Expat Natural Resources launches energy and commodities investment mutual fund
29.08.2022
The FSC has granted permission for Expat Natural Resources to organize a mutual fund. Expat Asset Management manages the fund with an investment focus on the energy, commodities, and industrial metals sectors. It is suitable for investors who seek to achieve high returns while taking high risks and maintaining investment liquidity.
Through this fund, Bulgarian individual investors will have easy access and concentrated exposure to the energy and commodities sectors. Expat Natural Resources will have a dynamically managed portfolio with investments predominantly in energy and mining companies’ equities publicly listed on global exchanges, commodities exchange traded funds, and commodities, precious and non-ferrous metals futures.
Expat initiated the creation of such a fund as a continuity of its experience and expertise in individual portfolios specifically focused on energy and commodities sectors. To manage those portfolios effectively, the company earlier engaged Boyan Rashev, leading expert in the field of energy and natural resources, as a consultant.
Main characteristics of the fund are:
- Immediate liquidity and the ability to manage exposure to those sectors more dynamically. The fund is open-ended and individual investors can access the fund's shares through the management company Expat Asset Management – purchase and redemption orders will be accepted every business day.
- No capital gains tax. Under Bulgarian law, gains from investments in EU registered mutual funds are tax exempt for Bulgarian individuals and legal entities.
- Small investments are possible, such as elements of a more diversified portfolio or those with periodic contributions.
- Lower transaction costs compared to investing in a bundle of individual instruments.
- No dividends distributed. Earnings and dividends received from positions are reinvested, which increases the net asset value to the benefit of investors.
Mandatory risk disclosure
Expat Natural Resources Mutual Fund has a high-risk profile. The fund falls into category 7 of the 7-point indicator scale given the high volatility of its underlying assets.
Market risk is the possibility of losses due to adverse changes in the value of financial instruments that are a part of the fund's portfolio. Investments in mutual fund shares are not guaranteed by the government guarantee fund or any other type of guarantee, and the future performance of the fund does not depend on its past performance. Other risks are also involved, such as liquidity, credit, interest rate, tax, regulatory, political, operational, price, currency, concentration, systemic, corporate, event risks, etc. More information on risks can be found in the Fund's Prospectus.
The full set of documents and information about the Fund can be found at www.expat.bg in the Documents category or here:
Portfolio assessment and NCA management rules
Risk assessment and management rules
Maintenance and management of liquid funds rules
The management company
Expat Capital, with its licensed management company Expat Asset Management, is the largest independent asset management company in Bulgaria - with hundreds of clients in over 30 countries and investments in over 55 markets worldwide across all asset classes. One of Expat's core business lines is the management of individual investment accounts (trust management). Through an investment account, an investor receives greater security, yield and control compared to traditional forms of savings while benefiting from flexibility and immediate liquidity.
In addition, the company manages a family of fund products, with Expat Natural Resources being the 19th fund in Expat’s portfolio. The others are:
- 14 funds unique to Bulgaria and geographical region from Frankfurt to Hong Kong:
- 11 exchange-traded funds (ETFs) listed for trading on 4 exchanges – on Bulgarian and Frankfurt stock exchanges, as well as in London and Ljubljana.
- The region's first "short" fund - on the SOFIX index.
- Expat Global Art - Bulgaria's first global art investment fund.
- Expat Gold - the first exchange-traded fund tracking gold’s performance.
- And 4 more instruments:
- 3 mutual funds with a global focus and
- REIT for property investments.
Expat works with well-established international financial institutions to guarantee security and quality of service to its clients. Expat’s partners include leading banks, depository banks, global and local brokers, exchanges, index operators, market makers, floor specialists and other financial institutions all around the world.
Risk disclosure
This announcement is for information purposes only and no part of it should be construed as an offer or invitation to engage in the sale or purchase of financial instruments and/or as a professional advice relating to an investment decision. This is a marketing communication. Please review the complete fund documentation before making a final investment decision. Past performance is no guarantee of future results, and the value of investments may decline or rise, resulting in possible substantial losses. Returns are not guaranteed and there is a risk of not being able to recover the full amount invested. Investors should be aware that future performance may be subject to taxation dependent on each investor's personal circumstances and subject to change in the future.
Expat Asset Management provides all interested parties an opportunity to familiarize themselves in Bulgarian with the current prospects, documents with key information for investors and accounting statements of the funds managed by the company. Information can be found on the company's website www.expat.bg, at the company's office (Sofia, 96A G. S. Rakovski Street) every working day from 9:00 to 18:00, and at all counters where sale and redemption of fund shares orders are accepted.