News

05 Feb AS WE SAVE AND MANAGE TODAY, SO WE WILL LIVE TOMORROW

An interview of Maria Kouzmanova with Angel Terziev, CEO of “POD DallBogg: Life and Health”

The investment strategies of pension companies largely determine the long-term outcomes for the insured. What does your pension fund invest in?

Our focus is global financial markets, and investment decisions are based on deep analysis and strategic planning. Investments in financial instruments and blue-chip companies in three of the world’s most dynamic and promising markets – North America, Europe and Asia – expand growth opportunities and control risk by allocating assets across economic regions. Geographic, subject and currency diversification is guaranteed by law, ensuring a sustainable process and allowing us to deliver stable, long-term results for our investors.

The investment portfolio that we manage features high quality and transparency with a modern diversification strategy. The aim is to achieve sustainable growth and security for pensioners in their investments, without disguising investments in and lending to related companies or swapping investment packages under backroom arrangements.

Our ownership is crystal clear and the contents of our investment portfolio can be checked quarterly on the DallBogg: Life & Health Pensions website. The same check can be made on the website of any other pension company in Bulgaria and then everything will become clear.

As the youngest pension insurance company in Bulgaria, what results are you reporting?

Pension assurance fund DallBogg: Life and Health has achieved an annualised return for the last 24-month period of 9.36%. This yield for our selected insured persons exceeds the average 6.94% set by the Financial Supervision Commission (FSC) for universal pension funds (UPF). A similar return of 9.25% p.a. was recorded in the voluntary pension fund (VPPF) of DallBogg: Life and Health, which offers a reasonable option for investing saved funds – instead of interest-free bank deposits.

Our insured persons have peace of mind and confidence in their future because we comply with all requirements and standards imposed by European and Bulgarian legislation and regulatory authorities – all guarantees of transparency and reliability. We believe that a high degree of regulation is a key factor in protecting the interests of all customers and in the long-term stability of investments.

What advice would you give to young people for whom pensions seem distant and complicated?

I urge them to take an active interest in their financial future – because as we invest today, so will we live tomorrow! The first step is to find out which pension fund their money is allocated to for retirement, how much money they have accumulated, what returns they have achieved – it is a good idea to collect their account statements. It is important to know what the investment portfolio of their insurance company is – are they established global and Bulgarian companies with a solid financial foundation, proven business model and long-term growth potential? Do they include highly capitalised companies operating in key sectors such as technology, healthcare, energy and consumer goods, known for their sustainable performance and reliability?

DallBogg Pensions have launched a campaign to bring the opportunities offered by pensions to the attention of active working people. Our well-trained experts answer many questions daily, offer objective and professional analysis, and can provide the best possible solutions. Because sound decisions today for your financial well-being tomorrow are invariably based on forward-thinking investments in a transparent and forward-looking portfolio that meets the highest industry standards.

Special Reserve ____________________________
These results are not related to future performance and do not guarantee positive return. It is not guaranteed that the funds in the individual accounts at OPF „DallBogg: Life and Health“ will keep their full amount. 

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“/ Rate of return and risk

 A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

 A comparison with the data can be made on the Financial Supervision Commission website (https://www.fsc.bg), section “Social Insurance activity”/ “Statistics”/ “Statistics and Analysis”/ 2023-2024

18 Jul The universal pension fund “DallBogg: Life and Health” achieved a return above the maximum set by the FSC

The Financial Supervision Commission published the data on the profitability of the supplementary pension funds for the period 30.06.2022 – 28.06.2024. Pension insurance companies are obliged to achieve a certain minimum yield in the management of supplementary compulsory pension insurance funds. Each quarter, the FSC determines a minimum return in percentage terms separately for universal and occupational pension funds based on the previous 24-month period of the achieved return from the management of the assets of all funds of the respective type. The compulsory funds managed by DallBogg: Life and Health have again reported outstanding performance over the last two years.

After the DallBogg: Life and Health Professional Pension Fund achieved a remarkable success in the previous quarter for a 24-month look back period, the data shows that DallBogg’s PPF also achieved a return of 8.30%, which exceeds the maximum return calculated by the FSC for this period of 7.85%. This has allowed the Fund to set aside a reserve to ensure that the minimum yield is achieved for future periods.

Excellent results for the period were also shown by DallBogg’s PPF, which ranked third among professional pension funds with a yield of 5.73%.

This remarkable result reflects the Company’s commitment to continuously improve investment strategies and deliver significant benefits to its assured persons. Strict adherence to high governance standards and a constant focus on client needs has established DallBogg as a stable and responsible partner in the pension-sector.

Anyone wishing to receive professional service and have their funds managed by a motivated team with extensive experience in the financial sector can contact the experts here.

___________________________ Special Reserve ____________________________

These results are not related to future performance and do not guarantee positive return. It is not guaranteed that the funds in the individual accounts at OPF „DallBogg: Life and Health“ will keep their full amount. 

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“/ Rate of return and risk

 A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

 A comparison with the data can be made on the Financial Supervision Commission website (https://www.fsc.bg), section “Social Insurance activity”/ “Statistics”/ “Statistics and Analysis”/ 2023-2024

22 Jun The youngest pension fund in Bulgaria is progressing the fastest: FSC reported about growth of insured persons and net assets in mandatory funds managed by DallBogg

Recently, the Financial Supervision Commission published the final data on supplementary pension insurance activity for the first quarter of 2024. The results track the status and development of pension funds and investment returns, clearly outlining the pace of development of this important sector in Bulgaria’s economy.

For the first reporting period, the last two years, the youngest pension insurance company, DallBogg Pensions: Life and Health, achieved a 5.58% return in its Occupational Pension Fund. The period encompassed the severe effects of the Covid-crisis as well as the devastating energy crisis, including two major wars, all of which impacted global product and financial markets. High inflation and high lending rates have also affected stock exchanges around the world in different ways. The volatility in the markets has caused uncertainty among investors, leading to considerable volatility in the prices of investment instruments and even indices such as the S&P 500, NASDAQ and Dow Jones have experienced large fluctuations. In response to increased inflation, interest rates have risen and remain predominantly at high levels worldwide, and many investors have shifted their capital away from equities towards lower-risk assets.

Amid this turmoil, the DallBogg Occupational Pension Fund not only managed to recover from a difficult 2022, but also to deliver a return of 9.49 per cent on its clients’ individual accounts at the end of 2023. For the period 31.03.2022 – 29.03.2024, the fund outperformed all other occupational pension funds in terms of returns, exceeding by 1.09% the maximum calculated by the FSC for those 24 months. Thus, the youngest  Occupational Pension Fund in the country has set aside a reserve to serve as a future guarantee for the insured – this brings additional security for their pension investments.

Fear, panic and irrational decisions have led the way between 2022 and 2023, and only the most far-sighted and courageous have been able to overcome them in time to reap the rewards of their insight and hard work. DallBogg: Life and Health put in the effort and resources to adapt in time to the changing economic and geopolitical parameters. Through agile and expert management, the company has provided additional benefits to its insureds.

Financial experts also noted the success of the DallBogg: Life and Health Universal Pension Fund, which achieved an enviable return for 2023 and delivered a 10.08% increase in its customers’ account balances. For the period 31.03.2022 – 29.03.2024 it achieved a return of 3.73% and ranked ahead of all other universal funds.

For the mentioned 24-month period, the universal fund managed by “DallBogg: Life and Health” Pensions not only overcame the volatility of the financial markets, but also, through an adequate strategy and expert approach, managed to outperform the other nine funds of the same type (some with below-weighted average returns, others even with negative returns).

According to the FSC, when comparing the results of the supplementary mandatory pension insurance business for the first quarter of 2024 compared to the end of 2023, the growth rate of the two mandatory funds (PPF and UPF) managed by  DallBogg: Life and Health Pensions is rapid and significant, which is an important indicator for measuring both the development of a company and the willingness of insured persons to change. For example, the number of clients and the amount of net assets in the DallBogg Ocupational Fund: Life and Health are increasing on a monthly basis, with the fund reporting an increase of 17.80% (vs. 0.44%average for the period for all professional funds) and 15.57% (vs. 3.66% average) respectively at the end of March 2024 compared to the end of 2023 figures. These performances significantly exceed those of the other nine occupational pension funds, while some of them even show a decline in the number of insured persons.

In the first three months of 2024, the number of insured persons in the DallBogg: Life and Health Universal Pension Fund increased by 14.99% (compared to an average of 0.58% for all universal funds over the period), and net assets increased by 15.21% (compared to an average of 4.72%). Within just one quarter, this growth is indicative of the high targets so far followed by expected results. And that’s not all. The data published by the FSC for the previous year is also interesting, and a careful review reveals that in all quarters of 2023. DallBogg: Life and Health Occupational and Universal Pension Fund are moving up on both indicators – number of insured persons and net assets. In one calendar year, clients in the professional fund increased by over 240% compared to December 2022, which is 120 times the average change for all professional funds in 2023. At the end of 2023, the net assets of the DallBogg: Life & Health Occupational Fund increased by over 250% compared to the end of 2022, which is more than 16 times the average change for the same funds over the period.

The performance of the DallBogg Occupational Fund: Life and Health in 2023, compared to the end of 2022, also outperforms all other universal funds and the numbers speak for themselves: the dynamics of the number of insured persons in the fund translates into an increase of 115%, which is more than 56 times the average change for all universal funds, and the change in net assets is close to 100%, i.e. almost 5 times the average increase over the period of funds of the same type.
Moving onwards and upwards has clearly been the main objective of POD DallBogg: Life and Health since the launch of its supplementary pension business. The remarkable performance of the company’s mandatory Occupational Fund and Universal Fund in the past 2023, in the first quarter of 2024, and for the past two-year period (31.03.2022 – 29.03.2024) has clearly highlighted the need for an alternative in the pension insurance market, which the youngest pension insurance company has provided to the Bulgarians.

Trends around the world and at home show that supplementary voluntary pension insurance is becoming an increasingly popular way to invest. All those who wish to receive professional service and have their funds managed by a motivated team with extensive experience in the financial sphere can contact the experts here.

___________________________ Special Reserve ____________________________

These results are not related to future performance and do not guarantee positive return. It is not guaranteed that the funds in the individual accounts at OPF „DallBogg: Life and Health“ will keep their full amount. 

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“/ Rate of return and risk

 A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

 A comparison with the data can be made on the Financial Supervision Commission website (https://www.fsc.bg), section “Social Insurance activity”/ “Statistics”/ “Statistics and Analysis”/ 2023-2024

30 Apr The occupational pension fund “DallBogg: Life and Health” achieved a return above the maximum set by the FSC

DallBogg: Life and Health’s Universal Pension Fund ranks ahead of all other universal pension funds int  he country

The Financial Supervision Commission published the data on the profitability achieved by the supplementary pension funds for the period 31.03.2022 – 29.03.2024.

For the first time the funds managed by “DallBogg: Life and Health” are included as the requirement is to have been active in the period of the yield announcement. The official FSC data is available here.

In a few words: the result is impressive. DallBogg OPF achieved a return that exceeded the maximum calculated for the 24-month period announced. The fund will set aside a reserve of 1% of the net assets under management.

DallBogg: Life and Health Universal Pension Fund did just as well, ranking ahead of all other universal funds in terms of returns achieved over the same period.

Insured persons in the OPF and UPF managed by DallBogg: Life and Health can enjoy their forward-looking choice of funds that bring them satisfaction and smiles. All those who wish to receive professional service and have their funds managed by a motivated team with extensive experience in the financial industry can contact the experts here.

*The charts above are based on data from the Financial Supervisory Commission and can be compared at https://www.fsc.bg/, Insurance/ Statistics/ Statistics and Analysis/ 2024/ Supplementary Pension Fund Returns for the period 31.03.2022 to 29.03.2024 on an annual basis.

*The results shown are not linked to future performance and do not guarantee positive returns. For the DallBogg: Life and Health OPF, the funds deposited in the individual accounts are not guaranteed to be retained in full.

09 Mar The power of voluntary pension saving: Warren Buffett’s example at 10% annual returns

by Veronika Yordanova and Biser Ivanov

Investing in your future through retirement savings in a voluntary pension fund (VRF) is not only fashionable, but also very beneficial for personal finances and family security. High discipline and persistence in voluntary saving for retirement, from early or middle age, yields lasting results. Fund managers, within strictly regulated limits, are responsible for diversifying and balancing risk – with care to provide ever higher returns. We received thousands of questions, many positive comments and advice on the published annual return figures for universal pension funds in Bulgaria for 2023. Therefore:

1. The results achieved in the relatively stable and safe, due to the extremely strict regulation, investment process speak for themselves:

2. The award-winning American investor Warren Buffett, 93, also called the “Oracle of Omaha” because he lives in the state of Nebraska, defines successful investing as a snowball that we or our chosen stewards of our money – funds and others – roll down a snowy slope. If the slope is longer, i.e., if we start saving at an early age and live longer, even if the initial “snowball” is small, it will grow significantly at a 10% annual return. We will achieve the same result if we start with a larger ‘snowball’ in mid-life, again due to the same ‘compounding’ or ‘compound interest’ effect; in company growth there is a similar concept – Compound Annual Growth Rate, CAGR ). In other words, as a new 10% is added each year on top of the original investment, it also increases by 10% on the realised and compounded returns over the past years.
3. Buffett’s example in dollars, which could be even more valuable in euros or euros at a 10% annual return if the depreciation of the dollar continues significantly longer:

10 thousand dollars invested today at a 10% annual compounded return will become almost 175 thousand dollars in 30 years, more than 450 thousand dollars in 40 years, and 1,170 million dollars in 50 years. The same extrapolation can be made for a 100 thousand initial investment in a voluntary pension fund over 30 years and a 10% annual compounded return, the amount could reach 1.750 million (i.e., 17.5 times or 17,500 percent increase); over 40 years, 4.5 million, and over 50 years the same amount, at the same annual return, could reach11.7 million!

Of course, all the examples and models are under the condition of actually achieved annual returns in a real maintained account (batch) with accumulation over the whole period.

______________________________ Special Reserve ____________________________

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“.

A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

15 Feb PAC DallBogg: Life and Health established its Deferred Retirement Pension Fund

Along with the skillfully managed funds – universal, professional, voluntary and life pension funds, “POD DALLBOGG: Life and Health” EAD has established its own lifelong pension fund. By Decision No. 82-FFP dated 13.02.2024, the Financial Supervision Commission entered the Fund in the register under Article 30, paragraph 1, item 13 of the Financial Supervision Commission Act.

At DallBogg Pensions we guarantee stability and security for all our clients. Our commitment is unwavering and we take responsibility that every payment will be made on time, with personalized care and professionalism, and we will provide peace of mind and well-being to those who trust us.

You can find more information about the Fund here in Bulgarian.

14 Feb Why are high returns in pensions extremely valuable and highly sought after when choosing your fund?

Veronika Yordanova, Director Regulation and Legal Assistance

Because if and when it is achieved, the returns are solid and the result of competence and foresight realised in an extremely tightly regulated investment process.

Tight regulation of the investment process is not an end in itself of the legislator or a frivolous pursuit of the regulator. Its main objective is the full and comprehensive protection of the interests of assured persons and the most comprehensive channeling of risk-taking and risk management in the investment process. The investment principles introduced by the Social Security Code aim to invest the funds in accordance with the long-term interests of the assured persons, respecting the principles of reliability, liquidity, profitability and diversification. The introduction of strict quantitative limits and categories of investable assets is intended to achieve precisely this objective by diversifying and calibrating the forms, methods, terms. The assumption and management of investment risk in pensions is the most rigorous and heavily underwritten regulation among all formats in the vast industry of foreign money management.

All pension funds are reliable in terms of security and stability, but how much return they produce on our pension money is the main question!
The official allocation or the official first choice of pension fund for individuals starting their working career is done by a committee set up under the National Revenue Agency, according to certain criteria applied to all pension funds:
– the annual return achieved by the pension fund concerned based on the previous 24-month period;
– the amount of fees charged by the pension companies on each contribution;
– number of individual applications accepted for new participation in a universal or occupational pension fund.

The three criteria shall be applied on the basis of the quarter preceding the service allocation. After one year from the last transfer, insured persons are free to choose another Universal Pension Fund (UPF) or Occupational Pension Fund (OPF) for their compulsory supplementary pension contributions. Any person over the age of 16 can choose to put their savings into a Voluntary Pension Fund to provide greater financial security for their old age and to help achieve longevity. The main criteria by which this choice is made in developed democratic countries are the returns achieved and confidence in the qualifications and morals of the fund managers – naturally, because they all work under the same regulation and equal rights. The scale of individual funds matters little when comparing returns because very often, even more often, small funds achieve higher proportional returns over years.

The qualifications, dedication and morale of fund managers lead to high returns

Vast arrays of information, advanced training at leading universities and experience gained at global financial institutions are a great advantage for fund managers in any modern pension company. There are different routes to achieving good returns – by outsourcing the investment process to external, specialist investment companies or by developing in-house expertise, which is always more cost-effective, but only after it has risen to a global orbit. Or by “passively” following stock indices, with the alternative of “actively” investing requiring more round-the-clock cultivation of investment portfolios. Naturally, in-house (internal) and active management of elevated levels of risk-taking can and does yield higher, even record returns, but is difficult to achieve and sustain over long periods. In these days of geopolitical turmoil, wars, technological revolutions, economic and migration processes, and uneven development of the workforce and its productivity – even the use of artificial intelligence by the most skilled fund managers cannot create guarantees of long-term success.

When hands are on the tiller and the driver is disciplined, skilled and well experienced – he will go far

Because there are always crises and upswings in individual business sectors, diversification is a regulatory requirement in the pension fund investment process. And it is with the ability to execute mandatory diversification, taking into account all trends and factors, their weight, in national and global economic life, that the high returns that delight insured persons fiduciaries are born.

In conclusion and from personal experience: a well-balanced team of fund managers in terms of age, qualifications, background and especially highly motivated in a modern corporate culture has a much better chance of lasting success, especially when working with great love for the profession: Happy Trifon Zarezan and Happy Valentine’s Day to all insured persons and colleagues!

______________________________ Special Reserve ____________________________

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“.

A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

05 Feb Let’s sort out your financial life, savings and pensions together

The easy way to plan successful and sustainable personal and family finances

The recession has started in Germany, two wars are raging in the north and south of Bulgaria, the demographic crisis is strangling us and migration pressure is intensifying. For now, the Bulgarian economy is adaptive and resilient with decent growth and great chances to join the euro area and fully join Schengen by the end of the year. Unemployment is relatively low and deposits in banks have reached BGN 80 billion. The big boom in mortgage lending continues and has exceeded BGN 20 billion, in no small part as a result of the traditional understanding and deep belief of Bulgarians that real estate “holds money” and “does not want bread and water”, i.e. serves as a safe investment without large maintenance costs. However, neither is true anymore due to the inflation of materials, energy and labour in depreciation and uncertainty in the real estate market, and the tax burden will inevitably grow. Many of the newly built apartments are empty due to insufficient solvent demand from tenants. The indebtedness of the population on consumer loans is also growing and has reached BGN 12 billion, and the interest burden on some of them – the so-called ‘quick loans’ – inevitably deepens poverty and causes financial crises in families and companies with unstable business models.

In today’s complex world, full of risks and opportunities, the choice is yours and must be made in good time

One possible way to cope in this turbulent environment, which will not settle down soon, is to choose a reliable Universal Pension Fund (UPF) for our mandatory additional pension contributions under the so-called “Second Pillar” and opt for a Voluntary Pension Fund for our pension savings. The timely and correct selection of an appropriate pension fund will help a lot to ensure that your contributions and savings are well managed, being invested in a legal, balanced and competent manner to provide a good return that will directly affect the amount of your second pension and the amount of voluntary savings that are always available to you. Savings and proper management of personal and family finances have lifted billions of people out of poverty and contributed to happier and more carefree lives.

One obvious example where “Your money never sleeps”

The thousands of members (pensioners) who chose the ‘DallBogg: Life & Health’ PF before the start of 2023 saw their own personal accounts (pension accounts) grow by 10.08% after it ended, an enviable return in the 2023 pension industry in the country. What is even more impressive is that this highest return for the past year was achieved by the youngest pension company, only 2 years old. Obviously, the competence, morality and dedication of fund managers have serious potential and are above the European level, because in Europe there are only very few funds with returns above 10%. That is why a quick and correct orientation is crucial. The attached graph, based on data from the FSC, shows that all Bulgarian universal pension funds reported positive returns of varying sizes over the past year and most of them met the raised expectations.

Your choice today is forward-looking when it depends on undisputed actual performance and proven capacity

It’s time to look around and park our retirement money where it’s safe, where it’s profitable! Total security is ensured by a strict licensing regime and day-to-day oversight by the regulator. However, profitability within this strict statutory framework is a product of competence and reprehensibility in managing investment risks. For example, since the beginning of the pandemic, a number of funds in Europe, the United States and Japan that invested heavily in assets backed by corporate real estate have experienced severe difficulties or have declared bankruptcy. The work of millions of people in the so-called home office has irreversibly shaken this segment, which for a number of decades was considered very stable and certainly lucrative.  Now, in December and January, Europe is being overwhelmed by a respiratory ‘triad’, a cocktail of three viruses: influenza, Covid-19 and RSV, which is reducing productivity and exacerbating all the other emerging problems that have led to a number of major strikes in several sectors. But whether investing in healthcare, which is underfunded everywhere, and in what assets exactly, will deliver increased returns is one of a thousand critical questions facing fund managers.

The examples spontaneously cited demonstrate the extraordinary importance of competence and foresight in the investment process. Due to their inadequacy and a number of other objective factors and policy decisions, pension systems today face increasing budget constraints, deficits and low returns. Therefore, new opportunities for increased productivity, innovation and discovery need to be harnessed to serve investors and savers to achieve healthy, facilitated and longevity.

2023 – the year of PAC DallBogg: Life and Health – boosted everyone’s confidence: “we are doing very well together”

“And indeed, with the enviable 10.08% yield achieved on the funds in the individual accounts of the insured persons in the ‘DallBogg: Life and Health’ pensions in 2023, we can hope that the distance with the Western Europeans is shortening for the time being,” says Ms. Larisa Borisova, Head of ‘Internal Control’ at the pension company. Because it is “crucial” – according to her – “that in the future our small, highly motivated and cohesive collective will be able to realize and report such and higher results for a number of years…embraced by a constant drive for development, high professional morale, expertise and dedication to the interests and investment goals of our members are our greatest virtues.”

The facts and explanations set forth are not related to and are not a promise of future performance nor a guarantee of future positive returns. A comparison with the data can be made at the Financial Supervision Commission website (https://www.fsc.bg).

The facts and explanations set forth are not related to and are not a promise of future performance nor a guarantee of future positive returns.

______________________________ Special Reserve ____________________________

A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“.

A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.

24 Jan The youngest universal pension fund DallBogg: Life and Health with its 10,08% rate of return for 2023

Larisa Borisova – Head of the Specialized Internal Control Service. Master in Accounting and Control. She reports directly to the Board of Directors. Ms. Borisova is a recognized expert with over ten years of experience in the pension industry and many years of experience in accounting, investment brokerage, finance and financial analysis.

The world is different today – full of threats, risks and opportunities
European communities face recession, a major war on the eastern frontiers, ageing populations, strong migration waves, rising poverty levels and persistent social inequalities. Pension systems are, at the same time and predictably, facing increasing budget constraints and deficits. There are also many new opportunities to increase productivity, innovation and discovery in the service of a healthy, facilitated and long life. Quick and proper orientation are crucial. Against this backdrop, in a relatively stable and growing economy, pensions offer opportunities to manage our retirement funds and savings with heightened expectations.All Bulgarian universal pension funds have reported positive returns in various amounts over the past year –FSC’s data.

Achieved returns by universal pension funds (UPF) in 2023.

Our choices today determine whether we will live like “Western European pensioners” tomorrow: it is time to look around and park our pension money where it is safe, where it is profitable!

And indeed, with the enviable 10.08% return achieved on the funds in the individual accounts of the insured persons in the ‘DallBogg: Life and Health’ UPF in 2023, we can hope that the distance with the Western Europeans is shortening for now. It is important that in the future our small, highly motivated and cohesive team is able to realise and report such and higher results for a number of years. With growth rates of 7-10-12% over 15 years, to take just one macroeconomic example, China has become the second economy in the world – far ahead of Japan and Germany. So at a microeconomic level, year-on-year returns are a key measure of how well the monthly compulsory additional pension contributions have been managed. However, the big prize comes when this high level is sustained over years. We are dedicated to this goal with the task of maintaining confidence and our attractiveness.

POD ‘DallBogg: Life and Health’ is the newest pension provider in the country and has only been operating for two years. We manage risk and expect it, which is why we say ‘your money never sleeps’. We invest in the world’s financial markets, exactly by the rules, while day and night literally change. So our members’ pensions and savings “work” now for their future wellbeing. Trust and exercised choice oblige and motivate us in this intense analytical and complex activity. The only timely activity that financially enlightened retirement savers, before they reach retirement age and after they are assigned to a fund, should decisively do is: their informed choice! And then only to monitor long-term returns.

2023 – PAC DallBogg: Life and Health’s year

Already only two years old, the ‘DallBogg: Life and Health’ AMP has managed to overtake all incumbent funds and companies in the country, where no new pension fund had been licensed for a full 12 years before. For us, the achievement is a great encouragement and a great responsibility to our members and all those who enthusiastically trust us and transfer their pension accounts. The past year 2023 was tense and at the same time heady with its downs and ups in the financial markets. A number of large funds abroad changed their strategy abruptly. In individual cases, these changes were as confirmation or encouraging evidence of the right course we had chosen. Over the past year, the assets of universal pension funds in this country have been invested in legally permitted investment instruments, and only the most far-sighted have been able to make the most of favourable times for transactions. Above all, the expert capacity of the funds’ management – their efficient management of the investment portfolio – is crucial. The ‘DallBogg: Life and Health’ UPF was particularly successful and managed to achieve the highest return among universal pension funds in Bulgaria for the year. We provoked universal admiration among our members, great interest among prospective clients and high levels of approval among unbiased observers.

In the harsh struggle with the high volatility of prices of financial instruments, the DallBogg: Life and Health UPF managed to achieve an enviable 10.08% yield on the funds in the individual accounts of the insured persons, who believed even more strongly in our expertise and spontaneously attracted new members to the fund.

However, the Bulgarian pension system in terms of funds raised relative to GDP is very small and is far from the OECD proportions we aspire to. Despite the improvements made recently, it can and should generally provide a more dignified old age for its current and future pensioners.

We are overwhelmed by a constant quest for development

PAC DallBogg: Life & Health constantly strives to improve the performance of its teams by developing individual talent and nurturing leadership skills especially in investment decision making. Material incentives, strictly limited by law, are more often replaced here by fostering a culture of constantly seeking and sharing knowledge and striving for innovation. The overarching organizational goal of these efforts is to build well-structured pension funds with robust controls, efficient investment of assets, and increased financial awareness of our current and future insured. We have begun to cultivate a lasting interest in our members in today’s global and national capital markets in order to awaken their interest in improving their long-term financial health by saving smartly for a third retirement. They should not be surprised at the middle or end of their working career by the financial outcome of their years of effort and savings. We were very saddened by the unanimous finding made from the rostrum of Parliament these days that almost all households whose homes are subject to renovation are struggling to invest BGN 5-6 000 for the 20% self-financing of renovation. At the same time, BGN 73 billion of people’s money is sitting on almost interest-free deposits in banks while the third – savings – pillar of the country’s voluntary pension insurance is desperately weak and undervalued as a source of additional stability and a guarantee-insurance instrument. Financial markets are volatile, so an important quality is the foresight of our investment team. High professional ethics, expertise and dedication to our members’ interests and investment goals are our greatest virtues.

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A description of the significance of the achieved rate of return and investment risk indicators

Nominal return – this is the return achieved on the management of a fund’s assets. It is calculated by dividing the difference between the value per unit of the fund valid for the last business day of the relevant year and the value per unit of the fund valid for the last business day of the previous year by the value per unit valid for the last business day of the previous year.

Standard Deviation – is a statistical measure of the dispersion of the values of a random quantity about its average or expected value. Standard deviation is accepted as one of the main indicators for measuring the risk of an investment portfolio.

Sharpe Ratio – an indicator that compares the returns achieved from managing an investment portfolio and the risk taken to achieve those returns.

The methodology for calculating the achieved nominal return and the level of investment risk is in accordance with Annex 15 of the „Regulation № 61/ 27.09.2018 of the FSC.

The investment policies of the funds managed by „PAC DallBogg: Life & Health“ are available on the Company’s website – https://dallbogg.bg, section „Investments“.

A description of the significance of the achieved rate of return, the level of investment risk, the methodology for calculating and the investment policy of the fund are available on the Company’s website – https://dallbogg.bg, section „Investments“/ „Rate of return and risk“.