Expat Bulgaria SOFIX UCITS ETF, ticker BGX, has been listed on BSE – Sofia

27.09.2016

Expat Bulgaria SOFIX UCITS ETF is the newest issuer on the Bulgarian Stock Exchange – Sofia (BSE – Sofia). The trading of the Fund’s shares with ticker BGX started on September 27, 2016.

Expat Bulgaria SOFIX UCITS ETF is the first exchange-traded fund in Bulgaria and it tracks the performance of the stock index SOFIX using the direct physical replication method. SOFIX is composed of the 15 most liquid companies listed on BSE – Sofia. The Fund invests in all of them in proportions closely matching those of the index and within the legal limitations. For the purposes of liquidity management and compliance restrictions, the fund may also invest in deposits and government bonds.

Expat Bulgaria SOFIX UCITS ETF is created and managed by Expat Asset Management and received a license by the FSC in August 2016. The shares of the Fund are offered for sale to eligible investors on the primary market and are bought back by the Fund. All other investors can trade the Fund’s shares on the secondary market through BSE – Sofia.

Over the past 10 years, SOFIX has fell by -49%. On the contrary, the US stock market has risen by +62% and the German market by +77% for the same period. Nevertheless, the direct foreign investments in Bulgaria have doubled over the past 9 years. The Bulgarian market appears to be undervalued and with a good growth potential. Expat Asset Management expects that the new Fund will attract the interest of foreign investors towards the Bulgarian stock exchange, as the ETF provides an easy and convenient way for investing in the region.

The profit from the investment in Expat Bulgaria SOFIX UCITS ETF is tax-free for both legal entities and individuals, according to the Bulgarian legislation. The transaction fees for buying and selling shares of the Fund are the same as the fees for buying and selling shares of individual companies. Expat Bulgaria SOFIX UCITS ETF has a management fee of 1% of the average annual net asset value.

Benefits of investing in Expat Bulgaria SOFIX UCITS ETF:

• An easy and transparent way for investing in the Bulgarian stock market. With the purchase of only one share, investors buy all the companies from SOFIX. The full structure of Expat Bulgaria SOFIX UCITS ETF will be published and updated on the website of Expat Asset Management.

• Through Expat Bulgaria SOFIX UCITS ETF investors gain exposure to the 15 most liquid stocks on BSE – Sofia.

• No profit/income tax. The profit earned by both individuals and legal entities through instruments traded on regulated market is tax-free, according to Bulgarian legislation.

• The shares of the Fund can be bought and sold on the stock exchange at any time. The Fund’s market-makers will be providing “buy-sell” quotes in order to maintain the liquidity of the instrument: the ability of investors to buy and sell shares at any time.

• The ability to invest in small amounts. The minimum investment is equal to one share which provides access to the Fund to both large institutional investors, and individuals.

• Lower transaction fees compared to investing in multiple shares separately.

Market information summary

Expat Asset Management, а subsidiary of Expat Capital, is a managing company with 10 years of experience in financial markets. The company manages 3 mutual funds (Expat Bonds, Expat Global Equities, and Expat Emerging Markets Stocks) and hundreds individual portfolios.