Investment funds’ AuM advance 36.2% YoY to BGN 5.9bn in end-2020

23.02.2021 Source: BNB; FFBH

In end-Dec 2020 the assets under management of domestic and foreign investment funds stood at BGN 5.9bn (5% of 2020 GDP), up 36.2% YoY (BGN 4.3bn; 3.6% of 2019 GDP). Foreign investment funds contributed almost the entire growth as they jumped 57.1% YoY to BGN 4.1bn. Domestic investment funds grew modestly by 4.3% YoY to BGN 1.8bn. In the local asset management industry domestic equity funds accounted for 39.9% of AuM in 2020 (38.4% in Dec 2019), while domestic bond funds were 40.2% of AuM, declining from 41.7% in end 2019. The remaining 20% were invested in a group, aggregating balanced funds, real estate funds and others. In terms of aggregate asset allocation 44.2% of domestic AuM were invested in equity (40.7% in 2019), 9.6% in other investment funds (10.7% in 2019) and 35.3% in non-equity securities (35.2% in Sep 2019). Cash and deposits amounted to 9.9% of AuM compared to 12.3% in end-2019. Preference for locally-listed securities remained strong as they accounted for 61.8% of investments (62.3% in 2019). The rest were split between EU – 29% of investments (29.5% in 2019), US – 1.8% (2.3% in 2019), Russia – 1.5% (1.4% in 2019), Balkans – 0.9% (1% in 2019) and others 5% (3.5% in 2019). Currency-wise, 92.5% of investments were denominated in either BGN or EUR compared to 91.7% in 2019. 78.3% of foreign investment funds were held by local pension funds and insurers (71.4% in 2019) and 16.1% by households (20.4% in 2019). Top investors in domestic funds were pension funds and insurers – 35.9% (34.3% in 2019) and households – 42.6% (43.2% in 2019).