The IMC Annual Meeting marked an important milestone for Bulgaria AIF Fund – the completion of its first year of operations.

Over the past twelve months, the Fund has focused on improving efficiency, increasing transparency, reducing costs, and building a stronger and more diversified investment portfolio. The result is a significantly enhanced investment structure that benefits both existing and future investors.

What We Achieved During the First 12 Months

1. Transaction Costs Reduced by 50%

One of the most significant achievements was the reduction of transaction costs with the Fund’s primary brokerage firm and custodian bank, DSK Bank.

Transaction costs were reduced from 0.30% to 0.15%, representing a 50% decrease, directly benefiting investors and improving the Fund’s overall efficiency.

2. Appointment of a Second Brokerage Firm

To further improve execution quality, market information, and pricing competitiveness, the Fund appointed a second brokerage firm.

This provides access to additional market intelligence, greater flexibility in execution, and the potential for even lower transaction costs in the future.

3. Performance Fee Removed

The Fund removed its previous performance fee structure of 20% above a net annual return of 7%.

This change creates a simpler and more transparent fee model, ensuring that investors clearly understand the Fund’s management costs without additional performance-based charges.

4. Transition to Euro

Following Bulgaria’s official adoption of the euro on 1 January 2026, the Fund’s reporting currency was converted from Bulgarian lev (BGN) to euro (EUR).

This aligns the Fund with the country’s new monetary framework and improves comparability for international investors.

5. Monthly Portfolio Transparency

Since November 2025, Bulgaria AIF has published monthly portfolio structure updates.

Very few funds in Bulgaria provide this level of transparency. Investors can review the Fund’s holdings, diversification, and investment strategy on a regular basis.

6. Performance Reported Net of All Costs

The Fund reports performance after deducting:

• Fund management fees;
• Administration expenses;
• Accounting expenses;
• Taxes;
• Other operating costs.

While some funds may advertise higher gross returns, investors ultimately receive net returns after all expenses. Bulgaria AIF believes that transparency requires reporting the numbers that matter most to investors.

7. Enhanced Portfolio Diversification

The Fund’s portfolio structure has been continuously improved through new subscriptions and portfolio rebalancing.

Compared to the first months of operation, when the portfolio consisted of only a limited number of holdings, the Fund now maintains a significantly more diversified structure designed to reduce concentration risk and generate stable income.

8. Assets Under Management Increased by More Than 200%

Assets under management increased from approximately €1.58 million in June 2025 to more than €5.30 million in June 2026, representing growth in excess of 200%.

The June 2026 report will also reflect the Fund’s most recent subscriptions, further strengthening its capital base and investment capacity.

Looking Forward

The first year has been focused on building the foundations of the Fund: reducing costs, increasing transparency, improving diversification, and expanding assets under management.

As Bulgaria enters a new economic era following euro adoption, Bulgaria AIF remains committed to preserving capital, generating stable income, and providing investors with one of the most transparent investment structures available in the Bulgarian market.

At the time of writing, Bulgaria AIF further diversified its bond portfolio through the acquisition of Bulgarian American Credit Bank (BAMB) bonds with a yield of approximately 5.16% and Central Cooperative Bank (CCBB) bonds with a yield of approximately 7.25%. The Fund also expects to invest an additional €150,000 in First Investment Bank (FIBB) bonds by the end of the month, targeting a yield of around 6.5%. These investments further strengthen portfolio diversification and recurring income generation.