One Day Later, an Even Higher Record

Yesterday, we commented on SOFIX closing at 1,838.43 points, up 6.06% for the day and approaching its historic 2007 peak.

Just one trading day later, SOFIX surpassed 2,000 points during the session and closed at 2,120.40 points, an increase of 15.34% in a single day and approximately 48% in just one month.

This is a new all-time closing high for Bulgaria’s benchmark stock index, exceeding its previous record of approximately 1,952 points set in October 2007.

What is striking is that the rally is not being driven by breakthroughs in artificial intelligence, space technology, robotics or other high-growth industries. It is taking place in a relatively small market made up largely of traditional businesses, with limited liquidity and modest trading volumes.

What Is Driving the Rally?

Eurohold Bulgaria has been a major contributor. According to BTA, its shares rose 22.94% to €2.68 in the previous session, following the company’s announcement of plans to seek a listing on the Frankfurt Stock Exchange’s Prime Standard segment and to move its shares to the EuroBridge segment of the Bulgarian Stock Exchange.

While these developments may improve international visibility and access to investors, they do not automatically translate into an equivalent increase in the company’s earnings, assets or intrinsic value.

In a concentrated and illiquid market, sharp movements in a handful of shares can have a disproportionate impact on the benchmark index. Such gains may also reverse quickly if buying pressure disappears.

Our View: Prices Are Not the Same as Value

Our concerns remain unchanged. The Bulgarian equity market is small, liquidity is limited, and share prices appear to be rising considerably faster than the underlying businesses.

Consider a stock that has appreciated by more than 360% over 52 weeks while its daily turnover is sometimes only around €100,000. When such modest trading activity can produce price movements approaching 60%, investors should ask whether quoted prices reflect sustainable valuations.

A rising share price does not necessarily indicate improving profitability, stronger cash flows or a more valuable business. Equally important, the last quoted price is not necessarily the price at which a meaningful investment position can actually be sold.

Bulgaria AIF’s Position

Bulgaria AIF maintains minimal exposure to BSE-listed equities. Its holdings in Advance Terrafund and Elana Agrocredit together represent less than 0.5% of Bulgaria AIF’s portfolio.

Instead of pursuing speculative equity rallies, Bulgaria AIF focuses primarily on corporate bonds issued by larger Bulgarian listed companies, seeking contractual income and a disciplined approach to risk. Bonds carry credit risk as well, which is why issuer selection and diversification matter.

Our investment philosophy remains straightforward: we prefer underlying economic value and sustainable returns over momentum-driven market prices.

Bulgaria Exits the FATF Grey List

Bulgaria is also leaving the FATF grey list of jurisdictions under increased monitoring for money laundering risks. Prime Minister Rumen Radev announced the decision on 30 October, according to BTA and Fakti.bg, after it was taken at the FATF plenary meeting in Paris. Bulgaria had been on the list since October 2023.

The decision recognises the efforts made to strengthen Bulgaria’s anti-money-laundering framework. The Prime Minister said it should bring greater confidence, more investment and easier international payments.

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A strong rally approaches historical territory

The Bulgarian Stock Exchange (BSE) is going through one of its strongest periods of price appreciation in nearly two decades. The benchmark SOFIX index is closing in on levels last seen in October 2007, just before the global financial crisis, when it reached a record closing high of approximately 1,952 points.

In about one month, SOFIX has risen from roughly 1,433 to 1,836 points, a gain of about 28%. Trading activity has also strengthened: reported turnover roughly doubled around the middle of the year, and a growing role for Bulgarian pension funds could add further demand for domestic equities. These developments point to renewed investor confidence in the Bulgarian capital market.

However, the speed of the move calls for caution.

Why speed matters

A 28% rise in share prices in a month does not mean that the underlying companies became 28% more valuable. Their earnings, balance sheets and intrinsic value do not change at that pace. When prices run ahead of fundamentals, the gap is filled by sentiment and speculative demand, and such a gap can close as quickly as it opened. A market that rises this fast can also reverse just as sharply, and investors who buy late carry the most risk.

Liquidity: the price on screen is not the price you can sell at

The Bulgarian equity market remains small and relatively illiquid compared with larger European exchanges. A rising index therefore does not guarantee that investors can sell their positions at prevailing prices. In a thin market even modest sell orders can push the price of an individual share down sharply. The value of a portfolio at quoted prices can differ significantly from the proceeds that could realistically be achieved on liquidation.

This matters most for institutional investors holding larger positions. It also cuts both ways: the thin trading that amplifies a rally can amplify a decline.

Where Bulgaria AIF stands

Bulgaria AIF’s exposure to BSE-listed equities is minimal. The fund holds only two such stocks, Advance Terrafund and Elana Agrocredit, together representing less than 0.5% of the portfolio. Both positions were opened near their 52-week lows, so they did not take part in the sharp rise; they have appreciated only modestly and provide a stable annual dividend.

The fund’s strategy is currently focused on bonds of larger Bulgarian listed companies.

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These developments included the launch of our new investor platform, encouraging clarification from the Bulgarian government regarding proposed physical stay requirements, and a decision to adopt a more active investment strategy.

A New Digital Platform for Bulgaria AIF Investors

One of September’s key milestones was the launch of Bulgaria AIF Fund’s new digital platform.

Beyond its modern and visually appealing design, the new website provides clearer, more accessible information about the fund, its investment strategy, and the Bulgaria Golden Visa program.

More importantly, the platform introduces a dedicated investor login portal, allowing investors to monitor their individual investment performance.

Through the portal, investors can track their monthly performance based on the fund’s Net Asset Value (NAV), taking into account the NAV at which their shares were originally subscribed.

Encouraging News Regarding Bulgaria’s Physical Stay Requirements

Perhaps the most significant development in September came from the Bulgarian government. In response to comments submitted concerning proposed amendments to Bulgaria’s permanent residence legislation, the Ministry of Interior provided an important clarification regarding the potential introduction of physical stay requirements.

The Ministry explained that the revocation of permanent residence would not be based solely on a rigid calendar calculation of time spent outside Bulgaria. Instead, the competent authorities would be required to assess each applicant’s individual circumstances before making a decision.

As an example, the Ministry specifically referred to education abroad as a circumstance that could justify an extended absence from Bulgaria.

For international investors, this clarification is particularly encouraging.

Foreign investors frequently maintain business interests, professional responsibilities, and personal commitments outside Bulgaria. Such circumstances could provide reasonable grounds for justifying an extended absence, although their acceptance would ultimately depend on an individual assessment by the authorities.

When Would an Absence Be Established?

Another important consideration is how and when an absence from Bulgaria would be established.

The assessment of an absence is generally connected to administrative procedures involving the competent immigration authorities.

Simply crossing the Bulgarian border does not, by itself, constitute a decision to revoke permanent residence. Border Police and the Migration Directorate perform different administrative functions, and any decision concerning the revocation of permanent residence must follow the applicable legal procedures.

For Golden Visa investors, a relevant assessment could arise when applying to renew their permanent residence card, potentially around five years and eight months after beginning the investment immigration process. This period may also coincide with preparations for a potential Bulgarian citizenship application.

Importantly, the establishment of an absence would not necessarily result in the automatic revocation of permanent residence. The authorities would still be required to consider the investor’s individual circumstances.

Although the proposed legislation has not yet been finalized, the government’s explanation suggests a more flexible approach than initially anticipated. The legislation process can be followed at Законопроекти – Народно събрание на Република България .

Bulgaria AIF Fund to Adopt a More Active Investment Strategy

The uncertainty surrounding the proposed physical stay requirements also influenced Bulgaria AIF Fund’s investment decisions. While awaiting further clarification, the fund adopted a relatively conservative approach to capital allocation.

As a result, approximately 40% of the portfolio remained in cash, providing substantial liquidity but inevitably limiting potential investment returns.

With greater clarity emerging regarding the government’s proposed approach, Bulgaria AIF Fund intends to transition toward a more active investment strategy. Our objective is to allocate the majority of available capital by the end of the year while maintaining a prudent cash reserve of approximately 5–10% of the portfolio.

The remaining capital will primarily be invested in bonds issued by companies listed on the Bulgarian Stock Exchange. These instruments provide an opportunity to generate recurring income while and can be easily converted into cash.

September Portfolio Developments: ITF Coupon Income and Elana AgroCredit

Although September was relatively quiet in terms of new capital allocations, the portfolio continued generating income. During the month, Bulgaria AIF Fund received a coupon payment from ITF (ITFD), relating to its €35,000 bond position.

In addition, the fund initiated a small equity position in Elana AgroCredit (EAC), purchasing shares near their 52-week low. The investment represents a selective opportunity to gain exposure to a Bulgarian listed company at what we considered an attractive entry price.

Two New Trakia Economic Zone Bond Investments

While September may have appeared relatively quiet, the fund completed two important bond investments toward the end of the month that will be reflected in the October portfolio.

Both involve bonds issued by Trakia Economic Zone, with different maturity profiles and expected returns.

The first investment, with a maturity in May 2027, is expected to generate a return of approximately 3.3% over a holding period of less than eight months. The second investment, maturing in November 2031, offers an expected annual return of approximately 7%.

Both positions are expected to be increased during October as the fund continues deploying its available capital.

These allocations reflect our broader strategy of balancing shorter-duration investments with longer-term income opportunities.

Looking Ahead: October Investment Opportunities

October is expected to bring several attractive bond investment opportunities, starting with Elana AgroCredit’s new amortizing bond, maturing in 2034. Despite its eight-year maturity, the bond is particularly interesting because it repays one-eighth of the principal annually, alongside a floating coupon of 3.25% plus six-month EURIBOR, potentially exceeding 5.5% annually. By 2030, investors could recover approximately 50% of their initial capital, plus cumulative coupon income potentially reaching 18–22%, depending on interest rates and repayment dates.

We also anticipate a new Trakia Economic Zone bond issuance maturing in 2034. The final terms will determine our allocation, as longer maturities carry additional risks in an uncertain economic environment. Another expected issuance comes from ITF, although we remain cautious given proposed regulatory changes to Bulgaria’s consumer lending sector that could significantly reduce lenders’ interest income and affect their business models.

These opportunities will support our transition toward a more fully invested portfolio, while maintaining a selective approach to risk and return.

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Bulgaria Confirms No Physical Stay Requirement

The Bulgarian Government officially confirmed that the proposed six-month physical stay requirement will not apply to Bulgaria Golden Visa investors.

This decision removes one of the few remaining uncertainties surrounding the program and preserves one of its most important competitive advantages. A mandatory physical stay of six months and one day would have been impractical for most international investors whose businesses and families are located in different jurisdictions.

The confirmation allows investors to continue planning with confidence and reinforces Bulgaria’s position as one of the most attractive investment residency programs in Europe.

First Investment Bank Dividend

During August, First Investment Bank (FIB) distributed its annual dividend.

Bulgaria AIF received EUR 3,500, representing a dividend yield of 7% on the Fund’s allocation.

Beyond the dividend itself, FIB continued to demonstrate strong financial performance during 2026, including further improvements to its credit ratings, supporting our positive long-term investment thesis.

New Investment – Starcom Holding AD

During August, Bulgaria AIF diversified its fixed-income portfolio by investing EUR 40,000 in the corporate bonds of Starcom Holding AD (STHB).

The Fund acquired four bonds, each with a nominal value of EUR 10,000, at a purchase price of 100.10.

Investment Profile

• Issuer: Starcom Holding AD
• Investment: EUR 40,000
• Purchase price: 100.10
• Coupon: 6-month EURIBOR + 3%
• Minimum coupon: 5.00%
• Maximum coupon: 7.50%
• Current interest rate: 5.488%
• Maturity: April 2033

Starcom Holding AD is a Bulgarian investment holding company whose securities are admitted to trading on the EuroBridge Market of the Bulgarian Stock Exchange. Established in cooperation with Deutsche Börse, the EuroBridge Market enables Bulgarian issuers to access both domestic and international investors through trading on regulated markets in Bulgaria and Germany.

Continued Growth in Assets Under Management

Bulgaria AIF continued to record strong growth in Assets Under Management (AUM), reflecting increasing investor confidence in both the Fund and the Bulgaria Golden Visa Program.

Between January 2026 and July 2026, the Fund’s Assets Under Management increased from approximately BGN 5.2 million to more than EUR 5.7 million, representing an increase of more than 100% after taking into account the conversion from Bulgarian lev to euro.

As of the end of July, cash and bank deposits represented 38.87% of the portfolio. This conservative allocation was maintained deliberately while uncertainty remained regarding the proposed legislative amendments concerning the Bulgaria Golden Visa Program.

Following the Government’s confirmation that no physical stay requirement will apply to investors, the Fund is now well positioned to deploy a greater proportion of its available liquidity into attractive investment opportunities while maintaining prudent diversification and risk management.

Ready to Accelerate Investments

With the Government now confirming that no physical stay requirement will be introduced, one of the Fund’s principal uncertainties has been removed.

The Fund is therefore well positioned to deploy a larger proportion of its available liquidity into carefully selected investment opportunities. While maintaining prudent diversification and liquidity management, Bulgaria AIF expects to gradually increase its exposure to Bulgarian listed equities, corporate bonds and other qualifying assets.

The combination of a stable legislative framework, growing assets under management and an expanding investment portfolio places Bulgaria AIF in a strong position for continued long-term growth.

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A Nigerian professional investor has subscribed to Bulgaria AIF, highlighting the growing international interest in Bulgaria’s Permanent Residency by Investment Program.

Bulgaria’s investment fund ecosystem remains largely under the radar, much like the high-net-worth market in Nigeria. While foreign capital continues to flow into Nigeria, there is also a growing segment of Nigerian investors seeking international diversification and relocation opportunities.

The Bulgaria Golden Visa provides one of the most attractive pathways for bringing foreign capital into Bulgaria. Such investments contribute to the development of the country’s investment fund ecosystem, support the Bulgarian Stock Exchange (BSE), and strengthen the local economy.

As government policies gradually reduce public subsidies and encourage greater private sector participation, investment funds are expected to play an increasingly important role in financing businesses and infrastructure. Where public institutions are less efficient, private capital can help drive innovation, improve services, and support sustainable economic growth.

Bulgaria AIF continues to offer professional investors a combination of capital preservation, regulatory transparency, and a secure pathway to Bulgarian permanent residence from day one.

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Advance Terrafund is the largest agricultural real estate investment trust (REIT) in Bulgaria and has a long-standing history of distributing annual dividends. It is also the most liquid REIT listed on the Bulgarian Stock Exchange and is a constituent of the BG REIT Index. Under Bulgarian law, REITs are required to distribute at least 90% of their annual accounting profit as dividends, making them an attractive income-generating investment.

For Bulgaria AIF Fund, Advance Terrafund represents a strategic long-term holding. The Fund intends to increase its position opportunistically, focusing on acquisitions at attractive valuations rather than purchasing shares at prevailing market prices. The current target acquisition level is approximately EUR 1.25 per share, representing a discount of around 5–10% to the current market price, subject to market conditions and available liquidity.

The post Advance Terrafund Paid a Dividend of EUR 0.065 per Share on 22 June 2026 appeared first on AIF.bg.

Bulgarian Energy Holding remains one of Bulgaria’s most strategically important state-owned enterprises. The holding is comprising subsidiaries operating in electricity generation and transmission, natural gas transmission, transit and storage, as well as lignite coal mining. The company is wholly owned by the Bulgarian state (Ministry of Energy) and is the largest state-owned enterprise in Bulgaria by total assets. The company is frequently the subject of market speculation, political debate, and recurring rumours regarding its future direction and ownership structure. However, despite the constant flow of speculation, the company continues to operate in a stable manner and has consistently met its obligations to investors.

A similar observation can be made regarding First Investment Bank. For nearly two decades, the bank has regularly appeared in market discussions concerning potential acquisitions or strategic investors. Yet, despite the persistent rumours of a sale, the institution remains independently operated and continues to maintain its position within the Bulgarian banking sector.

For income-oriented investors, the key takeaway is that while headlines and rumours often dominate public attention, long-term investment returns are ultimately driven by the issuer’s ability to generate stable cash flows and honour its obligations. This remains a cornerstone of the Bulgaria AIF Fund‘s investment strategy.

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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.

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The conference is expected to be the largest IMC event of 2026, bringing together leading participants from the global investment migration industry, including immigration lawyers, fund managers, family offices, wealth advisors, government representatives, and international investors.

Advocate Vasil Markov, acting as the official Field Officer of the Investment Migration Council for Bulgaria, together with Advocate Petar Markov, will participate in panel discussions and hold meetings with prospective investors and industry partners during the event.

While Bulgaria AIF Fund is structured to comply with the Bulgaria Golden Visa framework, its broader vision extends beyond investment migration. The fund is designed as a strategic and market-oriented investment vehicle focused on long-term sustainability, liquidity, and institutional investment principles rather than purely migration-driven capital raising.

Bulgaria AIF Fund Highlights

✓ Open-Ended Fund Structure
✓ Diversified Investment Portfolio
✓ No Redemption Restrictions
✓ Transparent 1% Fixed Management Fee (NAV)
✓ Zero Subscription Fees
✓ Zero Redemption Fees
✓ Internationally Recognized Management Team

The Investment Migration Council remains one of the world’s leading organizations in the field of Citizenship by Investment and Golden Visa programs, uniting government officials, legal experts, immigration professionals, fund managers, and global investors from across the international investment migration sector.

#BulgariaGoldenVisaComesToParis

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Central Cooperative Bank is listed on the Bulgarian Stock Exchange and is included in three of the country’s leading equity indices — SOFIX, BGBX40, and BG TR30. As of 2025, the bank ranks 6th in Bulgaria by total assets and 7th by profit among Bulgarian banks, reinforcing its position as one of the country’s leading financial institutions.

Founded in 1991 and publicly listed since 1999, the bank has steadily expanded its regional footprint across Southeast Europe. In 2007, it opened a branch in Cyprus. In 2008, it acquired North Macedonia’s Sileks Bank, subsequently rebranding it as Central Cooperative Bank (North Macedonia). In 2011, the bank merged Stater Bank into its Macedonian operations and also acquired a controlling stake in AKB Tatinvestbank in Kazan, Russia.

The investment reflects Bulgaria AIF’s continued focus on income-generating financial instruments and portfolio diversification across the Bulgarian financial sector. Alongside banking exposure, the fund has also initiated positions in the REIT and insurance segments, including its first acquired shares in Advance Terrafund, while monitoring the upcoming convertible bond IPO of Boleron (BLRN), expected on 27 May 2026. Accumulating and growing capital remains a key priority for Bulgaria AIF in order to participate in future investment opportunities and new projects, particularly in the real estate sector, which continues to be among the primary areas of interest for the fund’s investors.

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