Bulgarian collective investment schemes (53 in number, of which 42 mutual funds and 11 investment companies) are focusing their attention on stock issued by local companies, shows the Financial Supervision Commission's H2 Market Overview of The Non-Banking Sector.

In June 2005 the more aggressive schemes had 28.27% of their assets invested in equity, while in June 2006 the percentage was 34.31%, and this year it stands at 46.41%.

The share of foreign stocks also increases significantly. From 1.38% of the investment portfolio in 2005 H1, to 1.91% in 2006 H1, and 8.24% in this year's H1.

The percentage of non-financial assets in the portfolio is also increasing: from 1.19% in June 2005, to 3.13% in June 2006, and 4.28% in June 2007.

The dynamics of other investment solutions is slowing down. Investment in cash is slowing (from 27.68% in 2006 to 26.09% in 2007), investment in Bulgarian corporate bonds drops from 22.73% to 11.86%), in government equities from 4.57% to 1.01%, and in mortgage bonds from 4.31% to 1.29%.

Interest in municipal bonds, eurobonds and compensatory receipts is very small.

The sector of the collective investment schemes proves to be the most competitive in the non-banking sector in the countries, according to the report. The influence of the top 4 companies in the sector dropped from 76.21% to 30.54% between June 2005 and June 2007, according to a Herfindahl-Hirshman Index study on concentration on the market of services.

On June 30 assets of all collective schemes in the countries topped 500 mln leva (255.645 mln euros). As we informed at the end of September Bulgarian funds managed a total of 882.5 mln leva (451.2 mln euros), versus 724.796 mln leva (370.582 mln euros) at the end of August, and 630.86 mln leva (322.553 mln euros) at the end if July.