Банкеръ Weekly



Advance Invest AD, an open type investment company, sold its 10 millionth share in the middle of September, the company's press centre announced. When the company started operations in May 2004, it had slightly more than two million shares of BGN1 face value. Since then Advance Invest has achieved an 81% yield. Investment companies put the money gathered by their shareholders in shares with various risk/yield ratio. It is evident from their results that they attract attention in Bulgaria and will keep growing in the future. But their end is already notified by the contractual funds that appeared in Bulgaria (if, of course, the necessary amendments to the tax legislation are made). Even though the managers of open type investment companies tried to bring forward an amendment to the Law on Public Offering of Securities that would enable them to transform into contractual funds, their attempts failed. Yet, this type of funds will be remembered for their successful stay on the Bulgarian capital market. For a few years (some of them - for a few months) they reported a record growth of both their assets and yield.At present, there are eight licensed open type investment companies - Golden Lev, Elana Eurofund, TBI Eurobond, Advance Invest, Kapman Capital, KD Pelikan, UBB Balanced Fund, and Elana High Yield Fund. The assets they manage as of June 30, 2005 amount to BGN66MN. TBI Eurobond controls the biggest market share, 30% (BGN20MN). It is followed by Advance Invest which runs assets worth BGN16.3MN (providing it a 25% share of the market). Elana Eurofund controls 15% of the total assets of these funds and Golden Lev - approximately 12 per cent.Advance Invest reported the highest amount of investments in capital securities (41% of its assets) as of June 30, 2005. It is followed by Golden Lev (40%). The rest of the companies are more conservative. Low-risk Elana Eurofund and TBI Eurofund do not invest in capital securities at all. As of June 30, 2005, the highest return on assets was reported by Advance Invest (25%), followed by Kapman Capital (14.79%), UBB Balanced Fund (14.19%), Golden Lev (13.11%), KD Pelikan (12.60%), TBI Eurobond (4.50%) and Elana Eurofund (3.78%).Apparently, open type investment companies prefer investing in shares (20.21%) and corporate bonds (20.44%). Government securities (17.59%) and bank deposits (16.25%) are among the preferred investment instruments, too. It is to be noted that the funds are far more cautious when it comes to foreign securities (just 0.37% of their portfolio). Advance Invest is the only one to invest in Romanian shares. Due to that investment it became the first among these funds to go abroad.Open type companies are run by managing companies. There are eleven ones registered in Bulgaria so far - Golden Lev Capital, Elana Fund Management, TBI Asset management, Kapman Asset Management, Carol Capital Management, KD Investment, PFBK Asset Management, UBB Asset Management, DSK Asset Management, Sentinel Asset Management and BenchMark Asset Management. The total amount of assets they managed as of June 30 was BGN93.9MN.

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