ELANA Fund Management Bulgaria - Corporate Profile 2017 (EN language)

www.elana.net/fund-management



15 years in the lead

ELANA Fund Management is among the very first licensed asset managers in Bulgaria founded 2002. It started the first mutual fund in the country.

A member of the Bulgarian Association of Asset Managers. Member of the Board of BAAM.

Offers 7 UCITs funds and discretionary portfolio management to high-net-worth individuals /HNWI/ covering the full risk spectrum of investment strategies as well as saving plans.

Total assets under management – approx. EUR 50 mln. (31 Dec 2016, BAAM).

Among the top 5 players by AUM on the Bulgarian mutual funds market.

14 annual industry awards based on rankings of asset managers and funds.

Provides service to approx. 2000 institutional and individual investors, being distinctive for strong retail customers base.

Part of ELANA – one of the largest local institutions in the non-banking financial sector with history of 26 years in finance, investment, consultancy.



ELANA Group portfolio

Asset managementELANA Fund Management

15 years in the lead Started the first mutual fund Manages 7 UCITs funds and individual portfolios Approx. EUR 50 mln. AUM Recognized by 14 national and international

awards

Brokerage & investment bankingELANA Trading

26 years a licensed broker in the top 5 Full-service provider on Bulgarian and

international financial markets Best Bulgarian Broker of the Year 2016, 2015,

2014, 2013 and 2010 Trusted long-term partner to international

institutions

Public funds managementBulgarian Energy Efficiency and Renewable Sources Fund 12 years promotion of energy efficiency Fund Management granted via World Bank Selected as the first private fund manager of a

public fund

Regional Urban Development Fund Jessica Funds granted by EIB Partner of Societe Generale Expressbank 4 years – EUR 55 mln.

Renewable energyELANA Energy Management

RE projects since 2004 2 projects certified Class A Investment by

InvestBulgaria Agency (the governmental arm to promote investment in Bulgaria)

Farmland investment ELANA Agrocredit

First farmland financial leasing company Registered as a financial institution in 2012 Listed on the Bulgarian Stock Exchange -

Awarded The Best IPO in 2013 Guaranteed annual dividend Invested EUR 26 mln. in farm land purchase and

loans to farmers (as of 31 Dec 2016).

EU funding consultancyELANA Investment

18 years successful EU-funded projects for business and public administration

Consulted over 500 enterprises, agricultural producers and municipalities

Facilitated over EUR 260 mln. aid investment in BG industry and agriculture



Mission and values

Our mission

ELANA Fund Management strives to provide opportunities for wealth improvement to each and every of its investors – large andsmall, institutional and individual – by highly professional and wise investment management as well as by caring and accountablecustomer service.

Our values

We believe integrity and transparency are in the core our work. We are in the business of trust which can only be successful if wecare every day for the best interest of our investors and build a long-term relationship with them.

Our investment philosophy and approach

We take a fundamental approach to investing and rely on our in-depth analysis to bring the best results with a long-term vision. Indesigning our products we maintain ELANA’s twofold principle – keeping up with tradition & innovation: sustain the best ofexperience and grasp the future opportunities.



Core Team

Martin Nikolov has got 26 years’ experience in investmentmanagement. He is part of ELANA team from the very founding thecompany in the early 90s. Until 2006 he was the executive director ofthe brokerage ELANA Trading. Since then he took over themanagement of the asset manager in ELANA group. Mr. Nikolovgraduated Economics at the New Bulgarian University and specializedcurrency hedging at Merrill Lynch-London as well as Technical Analysisat ING Bank-Austria.

Martin NikolovExecutive Director and Member of the Board of ELANA Fund ManagementMember of the Board of ELANA Financial Holding

Ivaylo Penev, CFA Head of Asset Management Department, Member of the Board of ELANA Fund Management

Ivaylo Penev has over 15 years of experience in investmentmanagement and trading. He joined ELANA 2004 as anexpert on global financial markets at the brokerage ELANATrading. In 2007 he joined the asset management team ofELANA Fund Management. Since 2009 Mr. Penev headed thedepartment and in 2013 was appointed to be a Boardmember. Before ELANA, he had worked at debt securitiesand FX trading departments at the International Asset Bank(former First East International Bank).He graduated Banking & Finance at University of Nationaland World Economics. He is a licensed investmentconsultant by the Financial Supervision Commission as wellas CFA charterholder. Mr. Penev is a member of theBulgarian Dealers Association. He delivers thematic lectureson Finance at the American University in Bulgaria and at theAtanas Burov Foundation summer school on capital markets.Mr. Penev participates in the MBA Program in Finance ofVienna University Executive Academy with expectedgraduation in 2016.

Board MemberProcurator of ELANA Fund ManagementMember of the Board of ELANA Financial Holding

Georgi Malinov is the procurator of ELANA Fund Management and also amember of the Board of ELANA Financial Holding. He joined ELANAteam in 2003 after having legal positions in private businesses.Graduated Law at Sofia University.Georgi Malinov is member of the Board of the Bulgarian Association ofAsset Management Companies.



Partnerships

In Bulgaria, ELANA Fund Management is a founding member of the Bulgarian Association of Asset Managers and currently is amember of the board of the organisation. It represents the local fund industry and works for improvement and development of themarket by legal and educational efforts in order to ensure investors find a fair investing environment.

Traditional international partnerships

In 2008 launched a capital-protected fund, designed for Bulgarian investors, in partnership with KBC Asset Management.



Award-winning mutual funds

Conservative investment strategy

Inception 2007 Currency – BGN Invests in fixed-income instruments Highest annual return on the market in

2008 (7.6%); among top local low-riskfunds in 2010 (8.56%) and 2011 (6.54%)

1.16% annual return 2016 0.19% standard deviation 2016 Awarded Best Bulgarian Investment

Product 2007 Awarded Business New Europe Best

Fixed Income Fund in CEE 2009

Inception 2009 Currency EUR Invests in fixed-income and money

market instruments, up to 10% stocks 4.41% annual return 2016 1.13% standard deviation 2016 Best conservative fund in 2016

national ranking of Investor.bg

Balanced investment strategy

Inception 2006 The first mutual fund in USD on

the local market Invests up to 60% in Bulgarian

and international stocks 7.49% annual return 2016 4.35% standard deviation 2016

Inception 2005 Currency - EUR and BGN Invests up to 60% in Bulgarian

and international stocks 5.21% annual return 2016 3.53% standard deviation 2016 Awarded Business New Europe

Best Balanced Fund in CEE 2013, 2015 and 2016

Best balanced fund in national rankings 2016 of Investor.bg and Moitepari.bg



Award-winning mutual funds

Aggressive investment strategy

Inception 2005 Currency – BGN Invests up to 90% in Bulgarian and

international stocks 8.91% annual return 2016 6.75% standard deviation 2016

Inception 2010 Currency EUR Invests up to 90% in stocks on

international markets Focus on global blue chips and

emerging markets ETFs -4.81% annual return 2016 6.49% standard deviation 2016

Inception 2016 Currency – BGN Invests up to 100% in stocks

focused on the Bulgarian market



Individual Portfolio Management

ELANA Fund Management offers discretionary portfolio management to high-net-worth individuals since 2002.

What makes the difference

Experienced and credible asset manager

Professional CFA team with long-standing experienced and proven results

Flexibility of terms – customised design of portfolio and service

Capacity and flexibility in investment opportunities – easy access to approx. 130 markets of stocks, bonds and derivatives

The return data wascalculated after accountingfor all the investments andwithdrawals within theperiod as well afterpayment of fees. Therepresent a sample ofportfolios active in theperiod of 1 January – 31December 2016.

Risk profile of portfolios of customers

Yield range 2016

Low-risk portfolios 4.81% - 8.25%

Balanced portfolios 3.65% - 8.38%

High-risk portfolios 3.31% - 8.79%



Recognition: 14 awards in 15 years

ELANA Cash Fund was awarded Business New

Europe Best Fixed-income Fund in CEE

2009

From 2006 to 2009ELANA Fund

Management was awarded The Asset

Manager of The Year within the annual

industry ranking by Banker Weekly

ELANA Cash Fund was awarded Best

Investment Product 2007 by the International

Exhibition Banks, Investments, Money

ELANA Eurofund was awarded The Best Financial Product

2003 by the International

Exhibition Banks, Investments, Money

ELANA Balanced EUR Fund was

awarded Business New Europe

Intellinews Best Balanced Fund in

CEE for 2013, 2015 and 2016

ELANA Eurofund and ELANA Balanced EUR Fund were ranked

first in their categories in the

national ranking „Best Bulgarian funds 2016“

of Investor.bg

ELANA Balanced EUR Fund was ranked first in its category in the

national ranking „Best Bulgarian funds 2016“

of Moitepari.bg

In 2016ELANA Fund

Management was ranked The Asset Manager of The Year within the

annual industry ranking by Banker Weekly



Bulgaria: Country Overview

Territory – 110 994 sq.km. Population – 7.364 mln. as per 2011 census, 72.5% urban

Political system – Parliamentary Republic

EU member since 1.1.2007, NATO member since 29.4.2004

Currency: Bulgarian Lev, pegged to EUR @ 1,95583

Currency Board Arrangement, strongly supported by all institutions and with solid coverage ratios

Ease of doing business score (WB ranking): No. 39 – 2017 ranking

Well-capitalized banking system with 20.88% total capital adequacyratio as of December 2016 compared to 13% average for EU

Flat 10% income and corporate tax, 0% capital gains tax, 5% withholding dividend tax

GDP Growth Bulgaria vs EU

Source: NSI, Eurostat

6.9%

5.8%

-5.0%

0.7%

2.0%

0.5%1.1%

1.5%

3.0%2.6%

2.5%

-6%

-4%

-2%

0%

2%

4%

6%

8%

BG, annual growth %

EU, annual growth %



Bulgaria: Market Overview

Mutual funds market: Potential for growth

Source: BNB, BSE, NSI. Funds AUM include local and foreign funds assets.



Bulgaria: Market Overview

Bulgarian Stock Exchange vs region and developed markets 2007 – 2016

Source: Bloomberg



Welcome to Bulgaria!

ЕLANA Fund Management

Sopharma Business Towers

5, Lachezar Stanchev St., Tower B, Floor 12-13

Sofia 1756, Bulgaria

Tel.: +359 2 81 000 40

Fax: +359 2 95 815 23

E-mail: [email protected]

Website: www.elana.net/fund-management


mailto:[email protected]



Disclaimer

The content of the current presentation has been published with information purpose only and does not constitute an offer orsolicitation to invest or buy or sell any securities in any country, including in the United States of America, and to any person in anyjurisdiction in which such offer or solicitation would be contrary to local law or regulation including to U.S. persons as defined inRegulation S under the Securities Act of 1933.

We would like to inform investors that the value of investments and the income from them can go down. Profit is not guaranteed and there is a risk that investors may not get back the amount originally invested. Mutual fund investment as well as the fund assets are not guaranteed by any insurance fund or other type of guarantee.

The return data of individual portfolios’ management presented here should not be considered an indication or example of future results. In individual portfolio management investors assign the fund manager with the task to structure and manage a portfolio of financial assets in accordance with a specifically defined investment strategy at the risk of the investor. Investing in financial instruments in accordance to various investment strategies holds certain risks and therefore profits are not guaranteed and there is a risk that investors may not get back the amount originally invested.

Potential investors should make a decision for investing in ELANA Fund Management mutual funds based on the official documentsof each fund: prospectus and key investment information document (KIID). The documents are available at ELANA FundManagement head office at 5, Latchezar Stanchev St., Sopharma Business Towers, Tower B, Floor 12, Sofia, Bulgaria, as well as atall ELANA investment centres and on website: www.elana.net.

More on risks related to investment in financial instruments on www.elana.net.


www.elana.net.

www.elana.net.

ELANA Fund Management Bulgaria - Corporate Profile 2017 (EN language)

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