Published by Jessica Weisman-Pitts
Posted on August 28, 2024
Concord Asset Management is the second largest asset management company in Bulgaria in terms of AuM in mutual funds and AIFs. The company manages six UCITS funds, one NIF and two AIFs – one in Bulgaria and one in Luxembourg. During the last six years, it registered 4.5 times growth in AuM. Concord AM launched the first interactive learnings for mutual funds and saving plans in Bulgaria and Concord’s online platform for mutual funds offers a completely remote onboarding process. Concord AM is the first alternative investment fund manager in Bulgaria with a full license. In 2022, it acquired a RAIF-SICAV platform in Luxembourg. Currently, Concord is pioneering in ESG investments, launching the Concord Fund – 9 Green AIF.
Natalia Petrova has over 20 years of experience working in asset management, capital markets, equity and fixed-income trading, and UCITS products and services. She holds licenses from the Bulgarian Financial Supervision Commission to provide investment consulting and brokerage as well as a certificate for trading with government securities from the Ministry of Finance of the Republic of Bulgaria. Currently, she is the CEO of Concord Asset Management, on the Board of Directors at European Investment Management SICAV – RAIF, a procurator at ABC Finance. She is a Chairperson of the Management Board of the BAAMC (the Bulgarian Association of Asset Management Companies) and a board member at EFAMA. Natalia also holds a Ph.D. in finance and has been a university lecturer for 20 years, teaching subjects such as stock exchange markets, corporate finance and portfolio management, among others. She has participated in numerous initiatives to promote the asset management sector and increase the level of financial literacy in Bulgaria.
Natalia recently spoke with Wanda Rich, editor of Global Banking & Finance Review, to provide some insight into how Concord AM has become Bulgaria’s largest non-bank asset manager, the strategies it has implemented to maintain its leadership position, and its ability to continue growing in a competitive market.
Over the last few years, Natalia explained, Concord AM has been strategically focusing on expanding its range of alternative investment funds, significantly boosting its AuM. “Our eighth fund, Concord Fund – 8 Alternative Investment Fund, has grown to over 100 million BGN (more than EUR 50 million),” she said. “This success stems from offering diverse investment strategies tailored to Bulgarian investors’ needs, and we continue to see robust demand for more alternatives and options. By consistently innovating our product offerings and maintaining a keen understanding of market trends, we aim to stay ahead in this competitive landscape.”
Innovation, of course, relies significantly on the integration of new technologies that stand to shape the future of the industry. She discussed what that looks like for Concord AM. “We are most excited to utilise new technology in order to increase our core competencies and operational efficiency as well as improve our product,” she revealed. “This is an area of focus for many asset managers, so the need to stay informed and utilise new technology is greater than ever. Additionally, we are staying informed in regard to the demand and possibilities for investments into new tech-driven asset classes, such as tokenised assets and cryptocurrency.”
Natalia also brought up another area that Concord AM is actively exploring: platforms for accurate ESG ratings and systems that ensure the credibility of data. With ESG factors becoming increasingly important, integrating them into the company’s investment strategies and product offerings is a key focal point. “We are pioneering the first ESG-focused green alternative investment fund in Bulgaria,” she reported. “Our strategy involves carefully identifying companies and projects that are committed to sustainability with solid business plans. We conduct thorough analyses of their financials, management practices, and, of course, sustainability initiatives. By investing in companies with strong ESG commitments, we are working towards our goal to build a diversified portfolio, targeting core sectors such as renewable energy producers and energy efficiency projects, thereby fostering sustainable development while delivering robust returns.”
Recent global economic events have also reshaped its asset management strategies, and critical adjustments have been made in order to adapt to these changes. “The rise in global risks, be it global trade disruptions or geopolitical tensions, has necessitated a more strategic approach to managing investments and their exposure to those risks,” she explained. “We have implemented a more comprehensive risk management framework to better anticipate and address these challenges, allowing us to mitigate losses and capitalise on opportunities.”
Natalia is focusing on these opportunities moving forward. One of the biggest areas of opportunity that lies ahead for the asset management industry is engaging the new wave of younger investors who are increasingly seeking alternative investments, and Concord AM is well-positioned to address the challenge of meeting it. “The expectations of these tech-savvy investors regarding accessibility, transparency, and speed are challenging,” she confirmed. “However, we are confident that our commitment to innovation, enhanced digital platforms, and a customer-centric approach will position us well to attract and retain this demographic.
“We are also focusing on education and outreach to better inform younger investors about the benefits and risks of alternative investments, ensuring they feel confident in their investment choices.”
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