Bulgarian equity mutual fund Advance Invest was launched its initial public offer (IPO) in Bulgaria on Monday, May 10, becoming the first mutual fund investing in risk instruments in the country, South-East European News newswire reported.
"Advance will invest mainly in shares of liquid Bulgarian and Southeast-European companies with high growth potential," Daniel Ganev, chief portfolio manager of Karoll Capital Management, (KCM) said. KCM is the asset management arm of local investment intermediary Karoll, and will manage the asset allocation of the newly-established fund.
"We aim to provide a high yield for our clients, ensuring maximum security through a diversified stock portfolio," Ganev said. He added that Advance Invest would invest in equity of stable companies, whose market share and earnings are expected to grow in the future.
Currently, three mutual funds, Zlaten Lev, Elana Eurofund, and TBI Eurobond are the local institutional investors operating in the emerging Bulgarian capital markets. Elana Eurofund and TBI Eurobond invest in bonds and Zlaten Lev, a successor of a former privatisation fund, invests mainly in bonds and has a small equity portfolio. Back in March, Financial Supervision Commission licensed local Capman Capital to operate as a mutual fund but the fund has not begun operating yet.
By definition, mutual funds provide small investors with access to a diversified portfolio of equities, bonds, and other securities. Each shareholder participates in the gain or loss of the fund, which gives non-professional investors a better chance to participate in stock exchange trading.
Advance Invest, which was licensed to operate as an open-end fund in January, has the highest amount of investment capital among local mutual funds, SEE News said. It stands at 2.05 million leva distributed in ordinary shares with a face value of one lev per share.
"The fund will allocate 65 per cent of its investments in Bulgarian stocks and the remainder in shares of east European companies, bonds, treasury bills and bank deposits," Ganev explained. "In Bulgaria, we will invest mainly in the 13 most liquid stocks comprising the blue chip SOFIX index on the Bulgarian Stock Exchange, as well as in other liquid stocks with high market capitalisation," he added.
Advance Invest will initially invest in shares of Romanian, Greek and Turkish companies but hopes to be able to include US stock in its portfolio at a later stage. In a bid to manage risk, Advance Invest will pour funds in government bonds, mortgage bonds of local banks with high credit ratings, and in corporate bonds issued by leading firms in Bulgaria.
- Business Staff
"Advance will invest mainly in shares of liquid Bulgarian and Southeast-European companies with high growth potential," Daniel Ganev, chief portfolio manager of Karoll Capital Management, (KCM) said. KCM is the asset management arm of local investment intermediary Karoll, and will manage the asset allocation of the newly-established fund.
"We aim to provide a high yield for our clients, ensuring maximum security through a diversified stock portfolio," Ganev said. He added that Advance Invest would invest in equity of stable companies, whose market share and earnings are expected to grow in the future.
Currently, three mutual funds, Zlaten Lev, Elana Eurofund, and TBI Eurobond are the local institutional investors operating in the emerging Bulgarian capital markets. Elana Eurofund and TBI Eurobond invest in bonds and Zlaten Lev, a successor of a former privatisation fund, invests mainly in bonds and has a small equity portfolio. Back in March, Financial Supervision Commission licensed local Capman Capital to operate as a mutual fund but the fund has not begun operating yet.
By definition, mutual funds provide small investors with access to a diversified portfolio of equities, bonds, and other securities. Each shareholder participates in the gain or loss of the fund, which gives non-professional investors a better chance to participate in stock exchange trading.
Advance Invest, which was licensed to operate as an open-end fund in January, has the highest amount of investment capital among local mutual funds, SEE News said. It stands at 2.05 million leva distributed in ordinary shares with a face value of one lev per share.
"The fund will allocate 65 per cent of its investments in Bulgarian stocks and the remainder in shares of east European companies, bonds, treasury bills and bank deposits," Ganev explained. "In Bulgaria, we will invest mainly in the 13 most liquid stocks comprising the blue chip SOFIX index on the Bulgarian Stock Exchange, as well as in other liquid stocks with high market capitalisation," he added.
Advance Invest will initially invest in shares of Romanian, Greek and Turkish companies but hopes to be able to include US stock in its portfolio at a later stage. In a bid to manage risk, Advance Invest will pour funds in government bonds, mortgage bonds of local banks with high credit ratings, and in corporate bonds issued by leading firms in Bulgaria.
- Business Staff
