Portfolio management

Performance matters – this is our strength

The aim of portfolio management is to grow capital with moderate risk through economic cycles. In order to achieve the best long-term results, we manage investment portfolios actively, taking risks when prices are low and reducing risks when prices are high.

Personal approach

Everyone is different. In order to achieve your investment goals, we determine your objectives and risk tolerance. We offer various strategies to make sure we find an investment portfolio suitable for your needs.

Appropriate strategy

We choose an investment strategy with appropriate asset allocation for you and build an investment portfolio mostly with single securities. We do not forcefully put your money to work, but instead wait for the right moment on the financial markets. We do not charge a management fee on money that is not yet invested.

Transparent reporting

In addition to market overviews, we send you monthly overviews of your investments together with the results. We offer transparent reporting and keep you up to date with what is happening on the markets.

Active management

We regularly monitor portfolio investments as well as developments on financial markets and adjust positions on the basis of the long-term prospects.

We manage investment portfolios actively, taking risks when prices are low on financial markets and reducing risks when prices are high.

Why to choose LHV portfolio management?

Value your time and our experience

We believe that money is not a goal but a means to achieve goals and to make dreams become true. LHV Portfolio Management helps to make sure that you have enough of these means.

It does not matter whether you are looking to protect your assets from inflation or instead focusing on capital growth – we have helped to grow our clients’ assets efficiently in different economic environments.

1.
Performance matters. This is our greatest strength.

For us, investment starts from avoiding long-term capital losses, as that allows us to offer sustainable returns. We have managed to preserve our clients’ capital in hard times and grow it in good times.

2.
Good long-term performance starts from avoiding capital losses

We find the best investment opportunities when we monitor long-term changes in society, including in the economy and technology. We choose investments to our clients’ portfolios which have a clear focus on long-term trends.

3.
The objective is to grow capital in every economic cycle

We adapt quickly in the midst of big changes. Changes create opportunities and we are quick to take advantage of them.

4.
We adapt quickly

There are better times and worse times during investing. We manage portfolios actively: we take risks when prices are low on financial markets and reduce risks when prices rise.

5.
We believe in the active management of investments

We pick attractively priced single securities to our clients’ portfolios. We actively work towards avoiding the hottest assets in every economic cycle, as by investing in those, there is a risk of losing substantially.

6.
We focus on individual investments, not on over-diversified funds

LHV’s investment portfolios are liquid and diversified across different asset classes. That way, we hedge risks associated with investing.

7.
We offer liquid investment portfolios

LHV has Estonia’s largest local investment team that is looking for the best investment opportunities in different asset classes. We actively monitor investment opportunities in the Baltic region, in enterprises we are acquainted with in the Nordic countries, and on major stock exchanges.

8.
Investing is in our DNA

We are transparent in our communication and keep you up to date with what is happening in your portfolio and on the markets. You can see your portfolio in real-time in the Internet bank and receive a detailed report on results together with a market overview once a month. At regular seminars, we present thorough overviews of our individual investments and the main trends in asset classes.

9.
We report results transparently

Investment selection

Monitoring the economic environment

We actively monitor the macro-environment, the economic cycle and market psychology, and adjust positions accordingly – we use the changing environment for finding new opportunities.

Theme based approach

We look at structurally growing long-term trends, as structural trends always come back stronger from short-term market fluctuations.

Thoroughly analysed single investments

Upon selecting investments, we look within trends, analysing the value chain and finding an investment that has the most suitable risk-return ratio for us – portfolios focus on single shares and bonds.

Portfolio management investment strategies


Strategy	Conservative	Income	Balance	Growth	Aggressive growth
Average allocation in shares	0%	25%	50%	75%	100%
Average allocation in bonds	100%	75%	50%	25%	0%
Target return	3%	4%	5%	7%	9%
Volatility	6%	12%	25%	35%	45%


Strategy	Conservative
Average allocation in shares	0%
Average allocation in bonds	100%
Target return	3%
Volatility	6%


Strategy	Income
Average allocation in shares	25%
Average allocation in bonds	75%
Target return	4%
Volatility	12%


Strategy	Balance
Average allocation in shares	50%
Average allocation in bonds	50%
Target return	5%
Volatility	25%


Strategy	Growth
Average allocation in shares	75%
Average allocation in bonds	25%
Target return	7%
Volatility	35%


Strategy	Aggressive growth
Average allocation in shares	100%
Average allocation in bonds	0%
Target return	9%
Volatility	45%

Bonds

Examples of portolio management monthly reviews

Presentations, articles, podcasts

Team

Argo Metsaru

Head of Private Banking Investment Services

684 6867

argo@lhv.ee

Kaius Kiivramees

Portfolio Manager

Mikk Taras

Portfolio Manager