Bulgaria Retirement Funds Eye Investment Opportunities Abroad

A large portion of the additional retirement investments of Bulgarians are abroad, mainly in other countries members of the EU. File photo

The weak activity at the Bulgarian Stock Exchange and the lower interest rates for deposits are making Bulgaria’s retirement funds managers look for opportunities abroad.

Current estimates show that a large portion of the additional retirement investments of Bulgarians (the so-called 2nd and 3rd pension) are abroad, mainly in other countries members of the EU.

Retirement investments abroad in 2006 have been 8% of all assets of the retirement funds, while in 2007 they have grown to 14%. There is no data available for 2008 and 2009 about the share of securities, bonds and deposits in other countries because the reports stopped listing separate stats for investments in the country and abroad, but is estimated that about 25% of the securities have been issued or guaranteed by banks in the EU.

Currently, retirement funds in Bulgaria manage about BGN 4 B and say the share of their investments abroad is constantly growing.

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