Bulgaria’s pension funds reported negative annual yield for January as based on the past two years. Overall, however, they have put in a better performance compared with September 2009 figures, when two-year yield was -8.9% on average for universal schemes. This has now surged to 5.4% from -7.7 at the end of December. The pension funds of Doverie, Toplina, AIG were the best performers, posting the slimmest losses. At the other end of the scale stood Badeshte and Saglasie, which incurred the heftiest losses among mandatory schemes including universal and occupational funds. CCB-Sila and Badeshte fared worst among voluntary schemes, having invested more heavily in shares at the expense of fixed-yield securities such as deposits as bonds. Pension company Toplina, a unit of firms owned by Bulgarian energy tycoon Hristo Kovachki, has parked a substation portion of its portfolio with government securities, helping it score better than most of its competitors. The negative yield that has plagued Bulgarian pension schemes in the past two years was triggered mostly by the stock market collapse after funds pumped up share investments by the end of 2007.
Source: Dnevnik (03.02.2010)

Bulgarian cosmetics maker Alen Mak is teetering on the brink of insolvency after failing to pay off bond interests that are now due in advance. This was announced by United Bulgarian Bank (BNB), which is the custodian bank on one of the two issues.Alen Mak owes some BGN 10 million on a EUR 4.8 million bond with a face value of EUR 6.5 million, where a portion has already been paid, and on a smaller issue of EUR 592,000. Unless Alen Mak pays off its dues within the next couple of days, bondholders’ custodians might opt for realising the collateral including production sites and platforms, shares, all trademarks and other assets. The company’s main bondholders include the pension funds of Doverie, Badeshte, Saglasie as well as a number of mutual funds and insurers. Doverie executive director Daniela Petkova told Dnevnik she is fully convinced bondholders will receive their dues under both issues within the deadline. She added a rescue plan should be implemented at the company to help it generate more revenue. She said the bond collateral now covers over 200% of the due amounts.
Source: Pari (04.02.2010)

Real estate investment trust (REIT) CCB Real Estate Fund, which is linked to Bulgaria’s blue-blooded industrial conglomerate Chimimport, will sell a stake in a Sofia real estate to the pension funds of Saglasie for BGN 9 million. Chimimport also holds a 49.43% stake in the pension insurer but the two do not count as directly related entities as it does not control more than 50% of the capital. According to plans, the three pension schemes will acquire a combined 62.5% of a land plot and the building it is housing in Sofia’s Serdika neighbourhood.
Source: Dnevnik (16.07.2010)