Expat Global Bonds Mutual Fund

Risk profile: Low-risk

Investment focus: Global corporate and government bonds

Minimum investment: BGN 100 (EUR 51)

Expat Global Bonds (previous name Expat Bonds) is a conservative actively-managed mutual fund with a diversified portfolio of liquid bonds (government, corporate, and bank), mainly investment grade, of issuers worldwide. The fund aims to offer a better return than bank deposits, with a considerable additional advantage – the investment in Expat Global Bonds is fully liquid and the profit is not taxable.

The fund is suitable for investors whose main priority is to achieve a balance between stability and good return potential. Expat Global Bonds can serve as a current account (money-market) substitute for investors who cannot plan accurately their cashflow needs. The shares of the fund are issued in BGN, but the instrument is not exposed to a currency risk related to the Bulgarian currency, as it is comprised mainly of instruments in USD and EUR. The Bulgarian currency (lev) is pegged to the euro at a fixed rate BGN 1.95583 through a strictly-managed statutory-mandated currency board. All Bulgarian currency in circulation is backed > 100% by the foreign exchange reserves of the Bulgarian National Bank.

Expat Global Bonds is an open-ended UCITS-compliant mutual fund with quotes twice per week. The fund received its license from the Financial Supervision Commission on December 9, 2009.

 

Advantages:

  • Immediate liquidity. The fund’s units are 100% liquid, the investor may withdraw and deposit funds at any time with no yield losses.
  • No capital gains taxes. Investments in mutual funds in Bulgaria are tax exempt – 0% profit tax for legal entities, 0% income tax for individuals.
  • Dynamic asset allocation for better diversification and risk reduction. The fund consists of a wide number of financial instruments from different regions, economic sectors and in different currencies. Thus, the investor receives exposure to markets in which a separate investment would be more difficult and expensive. The asset allocation among instrument types, currencies, markets and economic sectors tends to achieve a superior balance between return and risk of the overall investment.
  • Active and professional portfolio management. The fund is managed by a team of portfolio managers and financial analysts who monitor the markets and the global economic and political situation. We apply a long-term investment strategy and tactical allocation with the goal of obtaining a higher expected return and balanced risk.
  • Low investment threshold. The minimum investment is BGN 100 (around EUR 51) which makes the mutual funds suitable for monthly savings. The Expat funds invest in financial instruments worldwide in different currencies. The funds’ shares are traded in BGN, but the investment is not exposed to risks related to the Bulgarian currency.
Summary as of 11.12.2018
Net asset value per share BGN 1 479.4562
Net asset value BGN 8 237 040.02
Number of outstanding shares 5 567.6132
Yield (%)
Since the beginning of the year -3.25%
For the previous year -4.37%
Since the beginning of the public offering (annualized) +4.42%
Prices for issuance of units of the fund
For investments up to BGN 500 000 BGN 1 494.2508
For investments equal or above BGN 500 000 BGN 1 486.8535
Prices for redemption of units of the fund
Up to 24 months BGN 1 464.6616
Over 24 months BGN 1 479.4562

Net asset value per share, in BGN

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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

Depository bank

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

The Depository bank keeps the assets of the fund and oversees its operations and the calculation of net asset value of the fund.