Mrs. Petkova, what is the number of people insured in Pension Fund Doverie?
The number of insured people in the three funds of the company is already more than 1 215 000.

How much have the company's assets increased last year, as well as year-to-date?

Doverie's net assets currently stand at more than 602 mln leva, and their increase year-to-date is nearly 105 mln leva. The biggest share in the company's assets is that of Doverie Universal Pension Fund – 365 246 480 leva, followed by Professional Pension Fund Doverie with 140 638 691 leva, and Voluntary Pension Fund Doverie with 96275857 leva.

What is the funds' profitability?
The average return during the period 1 January 2002 – 31 December 2006 is as follows: Doverie Universal Pension Fund – 10.95%, Professional Pension Fund – 10,56% and Pension Fund Doverie – 10,20%.

What sort of assests do you invest in, and in what proportion?
We have always abided by the „prudent person“ rule. It guarantees safety of investment in the interest of the beneficiary and minimizes chances of conflict of interests. At the same time assets are invested in a way which ensures quality, profitability and liquidity of the portfolio. The rule also requires us to diversify and to try not to expose to one element too much.

Customer satisfaction has always been the most important thing for our team. This is not an easy task and there is no exact formula for achieving it. Some people prefer higher profitability, others prefer higher safety of investment. Naturally, all people expect their money to be invested without any risk, and at the same time to bring high return. Also „high return“ means different things to different people. However, financial experts know this is an impossoble task – risk and return are interconnected and you cannot have high return without having high risk.

Does the company invest abroad?

Some of Doverie POK's funds are invested abroad with the aim of achieving a better regional, as well as production diversity of the investment portfolio. The portfolios are in this way less dependent on the dynamics of the Bulgarian market and the issuers, moreover, high concentration of risk is avoided.

On the other hand, investment on the international financial markets gives the opportunity of taking advantage of a wide variety of investment possibilities and of expansion beyond the borders of the capital market in Bulgaria. As you now, the market in Bulgaria is characterized by a small number of quality companies, low liquidity, low free-float, and the principles of good corporate managing are still just good recommendations, not taken into account. In other words the capital market in the country is still developing.

What are your expectations for the the retirement insurance market in the next several years?

We are expecting retirement funds in Bulgaria to accumulate capital faster and faster ,due to the increase of wages in the country, and to the growing awareness of the population on financial issues. In 2006 changes in Bulgarian legislation made regulations on retirement funds more liberal. We are expecting this tendency to continue and that retirement funds will soon be able to take full advantage of the opprtunities the international finanacial market can offer.

20 new companies will be listed on the Bulgarian Stock Exchange till the end of the year. What will be their impact in your opinion?

Over the past several years, more and more managers realized the advantages of raising funds through the capital market. Meanwhile the investing community is more nad more interested in the new companies on the BSE. These are the two main factros defining the interest in the new IPOs this year. The companies, which are better and have better corporate management become public. This boosts both the quality and the size of the capital market. Big Bulgarian institutional investors are already on the market i.e. there already exists demand for shares, bonds, etc. The prices of shares and bonds on the capital market is such that companies find raising finances through it very profitable. This is especially true of the debt market and will sooner or later expand to the stock market. It is the investment intermediaries task to build the bridge between the capital market and companies.

In your opinion, is the Bulgarian capital market too young and speculative, or is it entering a more mature stage?

After many years of development, we are now witnessing a more dynamically changing market, which attracts both local and foreign investors. The recent changes in the legislation and the financial knowledge of the participants on the market both contribute to its development. Although certain elements of the market could still be subject to manipulation, these flaws will be overcome in time. These days, an evaluation of the risk should always be made and clearly stated, together with the results of investment activity. I am saying this beacuse although the capital market has been going in a positive direction over the past several years, we must not forget it is a risky field. Sooner or later there are corrections on the markets, and when they come, investors have to be prepared for them, they must know that apart from bearing 30 – 100% return, their investment bears certain risks as well.