Short trades on SOFIX are finally possible (NEUTRAL)

The recently licensed Open-ended national mutual fund Expat Bulgaria Short SOFIX is tradeable as of today. Please recall, that it 1) will “rent” shares of the 15 companies in SOFIX from investors willing to give their shares in exchange for interest payments and 2) will sell the shares and keep cash at its balance. Annual interest rate used for “renting” will be 1%. The fund has also stated that they have negotiated positions on every member of SOFIX “enough” for the current dimensions of the fund, but they are still negotiating to ensure higher volume. It is important to mention that while shares are rented, all rights, dividends and corporate actions related to the previous belong to the owner. Apart from that, when requested, shares can be returned to the owner for up to 5 days at the moment, but Expat plans to shorten that period. Please recall that the fund has issued 110k units, but only 100k are listed on BSE. The indicative price is BGN 1.00. Minimum quotation value in terms of money at the time of entering is set at BGN 2.5k. Indicative Net asset value per share will be announced 7 times a day and for the moment it stands at BGN 0.994.