The introduction of the multi-fund model in capital pension funds expands investment opportunities. With the latest amendments to the Social Security Code (SSC), funds are now allowed to invest in companies traded on the BEAM growth market of the Bulgarian Stock Exchange, in debt and equity financial instruments for financing infrastructure projects, as well as to enter into transactions for lending non-cash financial instruments under strictly defined conditions within a unified system for lending financial instruments (Lending pool).
All investment restrictions are detailed in the SSC and aligned with the investment profile of the respective fund/sub-fund. Until now, pension fund investments have been limited solely to companies traded on regulated markets. These changes open up additional opportunities for returns and diversification aimed at reducing exposure risk, as well as providing access for small and medium-sized enterprises to raise capital in growth markets. The new framework is also expected to contribute to greater liquidity and depth in the Bulgarian capital market, as well as to stimulate entrepreneurship and economic growth.
All investment restrictions are detailed in the SSC and aligned with the investment profile of the respective fund/sub-fund. Until now, pension fund investments have been limited solely to companies traded on regulated markets. These changes open up additional opportunities for returns and diversification aimed at reducing exposure risk, as well as providing access for small and medium-sized enterprises to raise capital in growth markets. The new framework is also expected to contribute to greater liquidity and depth in the Bulgarian capital market, as well as to stimulate entrepreneurship and economic growth.