The balanced diversification of savings is the main strategy of the rich worldwide.

Long-term investments always bring positive profitability, as long as investors do not give in to their emotions. These are the words of Yavor Achev, Pioneer Investments Manager for Bulgaria. As an example he pointed out that a USD 1000 investment in the US Fund Pioneer in 1928 would have swollen today to USD 15.6 million, thus compensating for all the market crises over time. UniCredit Bulbank, the biggest bank in the country, offers the Pioneer Funds through its branch office network. Pioneer Investments was the first fund on the Bulgarian market and it has kept its leading market share since it was created.

In Europe, the assets managed by the mutual funds are in the amount of EUR 11.3 trillion. In order to make a comparison regarding how important the industry is, one should consider that the assets of the funds are approximately in the amount of Europe’s GDP. Pioneer Investments manages assets for EUR 225 billion, as nearly 60% of them are distributed in instruments with fixed profitability and around 20% are distributed in shares.

Currently investors focus mainly on investing in balanced funds and in bonds. This was made clear by the latest data for March of the European Fund and Asset Management Association. EUR 40 billion, out of nearly EUR 70 billion of net sales in Europe in March, have been distributed in balanced funds.

“The balanced diversification of savings, namely, is the main strategy of the rich worldwide”, Yavor Achev explained. People who own more than USD 1 billion of assets allocate their funds identically, both in the years of crisis and when the economy is growing. These people have almost the same quantity of investments in shares and bonds on the money market, as well as in real estate properties.

For the mass market customer, the most accessible way to make use of the advantages of the capital markets is to invest in these markets with small, equal monthly installments in the so-called saving plans. Last year, the number of new saving plans reached nearly 12,000, while the total number of the clients of the bank who invested in Pioneer Funds was slightly above 44,000. For the last 5 years, the number of people who took advantage of the diversified savings has grown fivefold. At the end of 2014, the average monthly installment under the saving plans was EUR 24.

“The industry of the collective investment schemes is a key industry for the development of the economy, as expectations are that we will witness a favourable climate for market development”, the Pioneer Investments Manager for Bulgaria also said. He also stated that financial markets have proven their abilities in terms of profitability above the inflation.

UniCredit Bulbank’s clients can invest in the Pioneer Investments funds in all the branch offices of the bank and thus they can allocate their own savings in various financial instruments. Last year, Pioneer Funds - Global Multi-Asset in EUR performed the best, with 19.32% profitability. In the last 5 years, the average return for the investors from this fund is 10.56% annually.

The majority of the Pioneer Investments funds are rated by Morningstar with 5 and 4 stars. The rating is aimed at assessing how successfully the fund is managed, by reducing the market influence to the minimum. Funds investing in the same class of assets and having similar strategies are compared.

Pioneer Investments offers a full range of investment solutions. The saving schemes of the company are intended for legal entities and private individuals and provide great freedom to choose the most convenient savings scheme according to the risk profile and the capacities of the client.

Pioneer Investments mutual funds offer high-quality investment schemes with low investment amounts, transparency of the investment management and high liquidity of the funds.

Pioneer Investments

Pioneer Investments is a global asset management fund, with presence in 28 countries and an expert team of more than 2000 employees, which includes more than 350 professionals in the field of investments. Pioneer is a world-renowned company, managing investments on the leading global capital markets.

Pioneer manages assets in the amount of EUR 225 billion. Last year the company recorded over EUR 13 billion net sales, which placed it in the Top 5 in Europe and Top 10 worldwide.

*This text is not intended as a recommendation for making an investment decision.

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