As II pillar pension funds actively managed by AS LHV Varahaldus outperformed
the benchmark index in 2020, LHV Group earned higher income than forecasted in
the Financial Plan.
2020 was a successful year for LHV pension funds, as seven LHV II pillar funds
earned clients a combined total return of 65 million euros after all fees. With
the amendment to regulations that entered into force in 2019, the state
significantly reduced monthly management fees of pension funds and also
introduced the possibility to earn performance fee if actively managed pension
funds outperform the benchmark index, that is increase in receipt of social tax
which also affects indexing of I pillar pension.
Outperforming the benchmark index and growing the assets of pension clients in
II pillar allowed LHV to earn a total of EUR 6.2 million performance fee from
the results of pension funds L and XL.
The Financial Plan of LHV Group
(https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=959301&me
ssageId=1208704) disclosed in October did not estimate potential performance fee
by asset management. As the performance fee exceeds the 10% deviation rule
established in the market regulations, this announcement has been made public.
LHV will disclose accurate financial results for Q4 and 12 months on 9 February
2021.
LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV
employs over 500 people. LHV's banking services are used by 247,000 clients, and
pension funds managed by LHV have more than 180,000 active clients. LHV's UK
branch offers banking infrastructure to 140 international financial services
companies, via which LHV's payment services reach clients around the world.
Priit Rum
LHV Commmunication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee (mailto:priit.rum@lhv.ee)
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