The shares fund with the largest return last year was European Potential having yield of 21.23%

The net value of the assets of Pioneer Investments mutual funds has grown by 30% for a year, up to EUR 130 million by the end of April. The information was presented by Yavor Achev, Manager of Pioneer Investments Bulgaria, at the two-day seminar “Capital markets and investments” in Varna, 27-28 June, on the occasion of the anniversary of the company in our country. Pioneer funds are offered in the branch network of the largest bank in the country – UniCredit Bulbank. Pioneer Investments is the first fund on the Bulgarian market and holds its leading position on the market since its creation.

“Pioneer Investments has leading positions on the market in Bulgaria which has good potential for development. So far this potential has not been exploited because of the fact that interests on deposits are comparable to the yield on more conservative investment schemes,” said Levon Hampartzoumian, Chief Executive Officer and Chairman of the Management Board of UniCredit Bulbank, at the opening of the seminar. He has explained that with a well-functioning economy there will be observed a convergence of interest levels in Bulgaria and in other countries and in this case there will be observed migration of assets from deposits as a form of savings to investments on the capital markets. “This is not a one-off activity, but a process which will take years on end and we hope that the next 10 years will be even more successful than the past ones for Pioneer Investments on the Bulgarian market,” commented Hampartzoumian.

Roman Pospìšil, Chief Executive Officer of Pioneer Asset Management (Czech Republic), responsible for the whole region of Central and Eastern Europe, came to Bulgaria especially for marking the 10-th anniversary of Pioneer Investments in Bulgaria. “Ten years ago we took the decision to enter the Bulgarian market because we estimated the potential and the fact that we could rely on the partnership of the strongest bank in the country,” said Pospìšil. Now the market share of Pioneer is 28%. Pospìšil explained that he was extremely satisfied with the market share attained; however, he had higher expectations for the amount of assets under management. “We are still optimistic and believe that this indicator will improve over the next years when interests on deposits will no longer be comparable to the yield from financial assets,” commented Pospìšil. In his opinion this trend in the region he is responsible for is already noticeable – the slight decrease in interests on deposits pepped up the share market in the region.

Yavor Achev summed up the forecasts of Pioneer Investments for the Bulgarian market in particular. “If 7% of the savings of the population were transferred to funds and Pioneer maintained its market share of around 20%, then over the next ten years the assets of the company would double and would reach EUR 252 million,” explained Achev.

He made a comparison between the inflation over the next ten years (according to the data of NSI) and the yield from some of the funds offered in Bulgaria by Pioneer. “The aim of any investment is to have a yield higher than inflation in order to be able to maintain the value of the money and although inflation remains at relatively high levels, collective investment schemes, investing in bonds, have higher return,” explained Yavor Achev. He gave examples of the Emerging Markets Equity with yield of 10.05%, U.S. High Yield with 8.23% and the Strategic Income with 6.83%. For the sake of comparison for the period March 2003 – March 2013 the average annual inflation in Bulgaria reached 5.3% according to NSI data.

Investors, natural persons, are predominantly private and affluent clients who have already set aside a certain amount of savings. Investors, who do not have large capitals, avail themselves of the advantages of the product “Savings Plan” with which investments in the funds are made by equal monthly installments. As of the end of May Pioneer Investments reported over 12 thousand active savings plans and 6000 director investors. Apart from direct products and savings plans, potential investors may also choose from Pioneer funds via the combined Life Insurance with Allianz Bulgaria and via the structured products.

More information for media:

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Phone: + 359 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch