Expat Euro Liquidity Mutual Fund

Risk profile: Low risk

Investment focus: Euro-denominated short-term government and corporate debt securities with high credit rating

Minimum investment: EUR 1000

 

Expat Euro Liquidity CF is an actively managed contractual fund that aims to realize returns from investments in short-term government and corporate debt securities with a maturity of up to 2 years, denominated in euro, with an investment credit rating and an average portfolio duration of a year and a half, assuming low risk.

The fund aims to offer better returns compared to bank deposits (*) in euro, but with one big advantage – investments in Expat Euro Liquidity are fully liquid (can be sold at any time) and capital gains are not taxed.

The fund fully complies with the requirements of Directive 2009/65/EC of the European Parliament and of the Council (a UCITS-compliant Fund) and can be offered to retail investors in the territory of the European Union and/or the European Economic Area community. CF "Expat Euro Liquidity" does not distribute the realised profit as income among the shareholders. The company reinvests the fund's profit, resulting in an increase in the fund’s net assets, in the interest of the fund's shareholders.

The expected annual gross yield of the fund is around 4% (**), whereas the levels of bank deposits are close to 0%. According to the statistics for BNB on the interest rate of term deposit balances in euros in the Household sector with a term of more than 1 day to 2 years, published on the website of BNB in the table "Interest rates and volumes on time deposit balances of the Households sector". (***)

 

Outcome scenarios (2023)

 

 Advantages:

  • An alternative to bank deposits. The fund is suitable for managing short-term liquidity as an alternative to bank deposits.
  • Instant liquidity. Shares are 100% liquid; investors can withdraw and deposit funds at any time.
  • Low transaction costs and fees. 0% Unit Purchase Fee, 0% Management Fee for Trust Clients and 0% Redemption Fee after the first year.
  • No capital gains tax. Investments in mutual funds in Bulgaria are tax-free – 0% profit tax for companies, 0% income tax for tax residents of Bulgaria.
  • Investment in Euros with a low threshold. The minimum investment in CF Expat Euro Liquidity is 1,000 euros, making it a suitable monthly savings account.
  • Active and professional management of the portfolio. The fund is managed by a team of portfolio managers and financial analysts who monitor global markets and economic and geopolitical news.

 

The CF Expat Euro Liquidity is suitable for:

  • Individual investors – the fund is suitable for investors looking for short-term inflation protection and an alternative to near-zero deposit rates.
  • Legal entities – the fund is suitable for short-term company liquidity management as an alternative to bank deposits.

 

Other risk factors:

  • Market risk – the possibility of experiencing losses due to unfavourable changes in the value of fund’s financial instruments
  • Interest rate risk – the possibility of a decrease in the value of a given security as a result of a rise in interest rates. Generally, rising interest rates adversely affect stock prices.
  • Liquid risk – the risk that, under certain conditions, it would be difficult or impossible to sell the securities held in the portfolio.
  • Other risks – credit interest, tax, regulatory, political, operational, price, currency, concentration, and systemic risks, etc. More information about the risks can be found in the Fund's Prospectus.

Full information of the risks can be found in the Fund Documents.

It is important to know that an investment in the shares of the fund is not a bank deposit and is, therefore, not insured by the Bank Deposit Guarantee Act or by any other type of guarantee. Investors should be aware that past performance is no indicator of future performance, and the value of investments may go up or down. Profits are not guaranteed and there is a risk of not being able to recover the full amount invested. Investments in shares of a mutual fund or through an individual investment account are not guaranteed by a state guarantee fund or by any other type of guarantee.

(*) According to BNB statistics for the interest rate on term deposit balances in euros in the Household sector with a term between 1 day to 2 years, as published on the website of BNB in the table "Interest rates and volumes on the balances of time deposits in the Household sector ".

(**) The expected gross annual yield of the fund is about 3.5% for the next 12 months, which is aligns with fund’s recommended investment horizon.

(***) Based on the average yield of an exemplary diversified portfolio of bonds with an investment rating and a duration of 1.5 years, denominated in euros, as of 04/11/2023.

Outcome scenarios 2023

Summary as of 16.05.2024
Net asset value per share EUR 1 027.8883
Net asset value EUR 4 956 065.5900
Number of outstanding shares 4 821.5996
Prices for purchasing shares of the fund
Prices for purchasing shares of the fund EUR 1 027.8883
Prices for redemption shares of the fund
Prices for redemption shares of the fund EUR 1 022.7489
frontend.fund_table.expat-etf.redemption.second EUR 1 027.8883

Documents

Managing company

Expat Asset Management Sofia, 96A G. S. Rakovski Str. Tel.: +359 2 980 1881 Fax: +359 2 980 7472 E-mail: office@expat.bg Web: www.expat.bg

Custodian

Eurobank Bulgaria Sofia, 260 Okolovrasten pat Blvd. Tel.: +359 2 816 6215 Fax: +359 2 988 8191 E-mail: custody@postbank.bg Web: www.postbank.bg