On 20 June 2019 KBC Group announced the establishment of a branch of KBC Asset Management in Bulgaria and simultaneously with that launched an innovative investment product: ExpertEase funds. The newly established branch is going to support the sales of funds, created by the product factories of both KBC Asset Management, as well as UBB Asset Management and is going to use the branch networks of UBB and DZI as a distribution channel. The aim of the ExpertEase funds is to combine a cliеnt’s comfort zone with a particular investment solution. This innovative investment philosophy is being referred to as “Comfort Zone Investing" (CoZI).

The comfort zone is being determined not only by a client’s own knowledge and experience, by his/her financial means and targets, by the duration of the selected investment period, but also by his/her loss tolerance. 

The "Comfort Zone Investing" (CoZI) concept expands the conventional approach by including aspects, linked to the emotional side of investments. During a personal meeting with an investment consultant from UBB the client and the consultant together determine the investor type, his/her risk profile and loss tolerance, his/her goals and expectations. Having done that the investment solution is being managed by the experts at KBC Asset Management, who follow closely market fluctuations and respond adequately to those, in order to keep the investment within the profile’s parameters.

„We can proudly share that КВС Asset Management is a leader in terms of market share in Belgium and Bulgaria. The company is in top 3 on the main markets where it operates. We are convinced that the penetration of КВС Asset Management on the Bulgarian market is going to strengthen the presence of КВС Group in Bulgaria and is going to offer innovative products to the clients of UBB and DZI“, said Johan Lema, Chief Executive Officer of KBC Asset Management. „Only 1 out of 50 clients of UBB use investment funds. For comparison, in Belgium 1 out of 5 clients of the Bank is also a client of the asset management company.  We see huge potential for growth on the Bulgarian market and our aim is to attract 1 out of 6 clients of the bank to use investment plans over the next years“, he also added.

„The potential of the investment funds’ market are the idle funds of Bulgarian citizens in deposit and savings accounts with interest rates close to 0%.  The gap between interests on savings and the inflation reduces the actual yield down to negative values. Hence, investment funds are an appropriate alternative. Given the present investment funds’ market of BGN 1.5-2 billion I believe an increase by 1-2 billion over the next 2 years is realistic, as we cannot expect so quick conversion from deposits to investment products“, Peter Andronov, Country Manager of KBC Group for Bulgaria, explained.

Embedding behavioral parameters in investment solutions creates trust and confidence for the investor that he/she remains in his/her comfort zone aided by techniques and expertise, provided by the fund managers of KBC Asset Management.

„We observe that people do not accept yield and losses in the same way. This is the reason for our more and more focusing on the emotional aspect of investing and on the personalized description of investors. This has inspired us to offer an innovative approach to investments and clients. It is this new approach that we have named CoZI. CoZI not only means that investors have a personalized portfolio with return, corresponding to their investment needs, but also ensures their comfort when the stock market takes a positive or a negative turn. For the achievement of that objective CoZI combines long-term experience with new scientific discoveries”, Frank Van De Vel, Chief Sales & Client Support Officer of KBC Asset Management, added.

„Clients from the countries where KBC Asset Management operates have already invested over EUR 9.4 billion in ExpertEase funds ”, Katina Peycheva, General Manager of the KBC Asset Management Branch in Bulgaria and Executive Director of UBB Asset Management, added. The approach to investments as an emotional and not only rational decision provides clients with new experience and ensures quality beyond that of conventional investment practices.

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KBC Asset Management’s moto is “Think Local, Create Together” with presence on six home markets with the following market shares: Belgium (31%), Czech Republic (24%), Slovakia (7%), Hungary (12%), Ireland (8%) and Bulgaria (15%), servicing a total of over 1.2 million clients and employing more than 520 employees.  The assets under management amount to EUR 214 billion. KBC Asset Management has highly efficient operations based on straight-through processing, relying on technologically enhanced human expertise with a focus on innovations.

UBB Asset Management has 15 years of history on the Bulgarian market and manages 9 funds of total worth over BGN 230 million. The managed funds are among the most successful in this country and they offer innovative opportunities for investment on the Bulgarian an international stock markets. UBB Asset Management is number one on the local funds’ market.