Expat Gold

Risk profile: High-risk

Investment focus: Passive tracking of the gold price

Minimum investment: None

Expat Gold is a national exchange-traded open-ended fund that passively tracks the price of gold. It is suitable for investors seeking an easy access to financial instruments which track the movement of the price of gold in order to diversify or hedge their investment portfolio.

Expat Gold will passively track the price of gold by seeking to replicate as closely as possible the return of LME PM Price Reference – Gold, published by its benchmark administrator London Metal Exchange (https://www.lme.com/Metals/Precious-metals/LME-Gold#tabIndex=1).

The fund was recognized by the Bulgarian Financial Supervision Commission on Dec 10, 2020. After raising initial capital on the primary market from eligible investors, the fund is expected to be listed for trading on the Bulgarian Stock Exchange in early 2021 where individual non-professional investors will be able to trade it.

 

Characteristics:

  • Low investment threshold. Expat Gold will be traded on the Bulgarian Stock Exchange at a minimum volume of one share, which makes it accessible to both big institutional investors and small individual investors.
  • Liquidity. For individual investors, the fund will be traded on the Bulgarian Stock Exchange where market-makers will maintain quotations and will guarantee the ability to buy and sell shares at any moment. The primary market for purchase and redemption of shares is also open every day to larger qualified investors.
  • Lower transaction costs. In the most common case, the Bulgarian investors could get lower costs from trading this instrument on the BSE in comparison with the transaction costs for buying and safekeeping other foreign gold funds, to which they have access.
  • No capital gains tax. Capital gains (profits) from instruments traded on the Bulgarian Stock Exchange are exempt from taxation in Bulgaria.

Expat Gold has a high-risk profile, classified under the 6th (out of the 7) category of the risk indicator providing that commodities and precious metals are highly volatile and their value could sharply rise or fall.

Eligible investors can buy and sell their shares directly from and to Expat Gold in the primary market, while all investors can trade the ETF's shares on the stock exchange (the secondary market).

Summary as of 18.01.2021
Net asset value per share EUR 0.9984
Net asset value EUR 59 901.88
Number of outstanding shares 60 000
The price for issuing or redemption of shares on the primamry market is equal to the NAV per share, calculated at the end of the day of the order, plus an issuance/redemption fee indicated in the prospectus or in a contract signed between the investor and the management company. The standard fee for orders on the primary market is 2% of the order amount.
Number of shares as of 15.01.2021
Number of shares already issued 60 000
New shares ordered for issuance in settlement 0
Shares ordered for redemption 0
Total number of shares 60 000
Orders on the primary market submitted by 3 p.m. on 15.01.2021
Orders for purchase of shares (number of shares) 0
Orders for redemption of shares (number of shares) 0

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

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

Marketmaker

Benchmark Finance Sofia, 19 Viskyar planina Str. Tel.: +359 2 625 481 Fax: +359 2 625 388 E-mail: office@benchmark.bg Web: www.benchmark.bg