EXCELLENT Financial Plan

Key Product Features of “EXCELLENT FINANCIAL PLAN”

The EXCELLENT FINANCIAL PLAN (EFP) product is an individual plan for investing in mutual funds organized and managed by Concord Asset Management, which is tailored to the preferences of each individual investor and allows to periodically subscribe units of a selected fund for the amount previously specified by the investor. The choice of a monthly financial plan, as well as a mutual fund or funds, depends on the investment objective, financial experience and willingness to take risks by investors. Due to its characteristics, the product is suitable for investors with a long-term investment horizon and is not recommended for those who follow a strategy of realizing short-term capital gains. The product is suitable for both individuals and corporate clients / institutional investors.

Mutual funds to which the product is applicable

When choosing this product, the investor enters into a Contract-Order for monthly subscription of units for a monthly regular subscription of units in the preferred fund or funds, specifying the amount of investment in one or a combination of the following funds:

• Concord Fund-1 Stocks and Bonds – balanced
• Concord Fund-2 Equity – high risk
• Concord Fund-6 Bonds – low risk

The amount of the periodic installment in EFP is defined by the client, but may not be less than BGN 50 (fifty) per fund per month. With the choice of a regular investment, the investor fixes an exact date of the month. This way, each month on the date specified by the investor, units of the mutual fund or funds can be purchased for the predefined amount.

Method of investment

Excellent Financial Plan (EFP) can be concluded in two ways:
– at the office of Concord Asset Management, located at: 1303 Sofia, 117 Todor Alexandrov Blvd.
– through Concord Online platform, in case the client has been identified in advance by an authorized employee of Concord Asset Management in the office of the asset management company, where a Framework contract for investment services for purchase and redemption of units of mutual funds managed by the company (Framework contract) is signed between the client and the company.

After identifying the client in its office and signing the Framework contract, the management company provides to the client a unique username and password for access to Concord Online. The Concord Online platform is web-based and accessible on the website of the management company at the following e-mail address: https://online.concord-am.bg/
When concluding an EFP contract through Concord Online, the investor who is already a client of Concord Asset Management AD chooses:

• amount (the minimum installment is BGN 50.00);
• fund;
• the date of the month for the transfer of the EFP amount;
• indicates the bank card / account number. The Client may only use bank cards / accounts in which he / she is the holder and for which he / she has informed the Management Company that he / she will use for payment of the EFP contributions;
• selects the subscription button to become a recurring service.

The Client has the right to change the parameters (amount and date of investment) or to terminate his EXCELLENT Financial Plan at any time. If the change in parameters is made on the date of investment chosen by the client, but after the close of the business day, the change will take effect from the next business day.
With purpose to conclude an EFP, the investor must have an account with a bank to which he/she is the holder and from which the amount must be deposited. The investor must provide a valid e-mail address and mobile phone number for contacts. In case the account is not in Bulgarian leva (BGN), the amount is converted at the exchange rate for the day of the bank from which the card was issued.

Concord Asset Management executes the subscription order if there is sufficient coverage on the investor’s current account or card account on the date selected by the EFP. If the date chosen by the investor for a monthly investment is a non-working day or a public holiday, the system transfers the amount on the next business day. In case of insufficient funds in the investor’s account on the selected date, the order shall be automatically resubmitted for execution within 4 (four) calendar days following the date chosen by the investor. In case the minimum availability of funds is not reached within the specified period, it will automatically proceed to the next investment period without accumulating the amount from the previous period. Upon conclusion of the Contract – Order for monthly subscription of units, the investor signs an agreement to provide the card data for the purposes of the EFP. The issue value for the agreed periodic investments is determined in accordance with the Rules and Prospectus of the respective fund.

Costs to be paid by investors for the purchase (subscription) and redemption of unit shares

Investors using the EFP product do not pay subscription fee for the monthly periodic installments, as well as a redemption fee for the units within the EFP product in the selected funds. When purchasing (subscribing) units in the EFP, investors only pay a fee for transfer of the amount through e-Pay as follows:

• for amounts less than BGN 200.00 incl. – BGN 0.48, VAT included;
• for amounts more than BGN 200.00 – BGN 0.96, VAT included.

The fee is automatically paid from the invested amount of each installment. The fee withheld reduces the monthly amount for the purchase of units of the respective fund. Investors are subject to all other fees specified in this Prospectus and the Fund’s rules.

The unit selling price is based on the issue value determined for the next day of the month following the day of the purchase order. Purchase of units is made for the amount of the investment reduced by the e-Pay transfer fee described above (when such a payment method is selected). Number of units is rounded to the smaller integer and for the amount left a partial unit is bought rounded up to the fourth decimal number. The redemption of units is carried out in the manner specified in the Rules and Prospectus of the mutual fund selected by the EFP. The investor may offer for redemption a part or all of his/her units.

Change in the parameters of “EXCELLENT Financial Plan”

The contract for the product EFP is without a specified term. In case of change in the client’s investment intentions, the client may change the parameters of the EFP. The changes are made by the investor in Concord Online system or at the office of the Company. If the changes are made after the date of the regular investment, the updated parameters will take effect the next business day. When the change is made via Concord Online, by choosing the new parameter – investment date or amount, the investor explicitly gives his/her consent for the change.

The investor is entitled to terminate the EFP if he/she expressly declares it via Concord Online or at the office of the Management Company. The termination shall be requested not later than two calendar days before the relevant periodic investment date, in accordance with the selected investment plan. When using “Concord Online”, choosing the option to terminate the EFP, it is considered that the investor has explicitly expressed his/her unconditional consent to terminate the EFP product for one particular or for all funds.

In addition, the EFP product can be terminated unilaterally by the management company if:

• there is a lack of cash in the account for transfer of the investment amount for 6 consecutive months;
• in the case of a conversion of the fund, a change in its risk profile, a change in the investment strategy leading to an increase in the risk for the investor;
• unilateral notification by the management company without the latter indicating any reason.

Advantages of the product “EXCELLENT Financial Plan”

Opportunity to plan selected monthly investments and according to the investment profile of each individual investor.
Simple investment scheme – no subscription and redemption fees (except for the payment costs mentioned above), possibility to pay the monthly installments online via the e-Pay system.

Increasing the efficiency of the investment – under strict execution of EFP, each investor acquires units of the selected fund at an equal interval of time and for an equal amount. Under these conditions, when the unit price is high, the investor acquires a smaller number of units and, when it is low, a larger number of units. In the long term, he/she holds more units acquired at a lower price and fewer units acquired at a higher price, i.e. the weighted average cost of his/her investment is lower. This eliminates the risk of a subjective choice of time to invest in the long term.

The capital gain is tax-exempt

The effect of compounded interest rate – any profit from the amounts invested in previous periods, is also reinvested, resulting in continuous growth.

Flexibility – the opportunity for the investor to reduce or increase the monthly installment and / or change the date on which the investments are made, depending on their priorities. The investor may change the risk profile of his investment by transferring it to another fund, respectively another EFP, without paying fees for the issue and redemption.
Liquidity – when the investor needs money, he/she may place a redemption order for a part or all of the possessed units.
A long-term investment alternative that does not lose the accumulated return in case of early redemption.

Payment of monthly installments trough ePay.bg system

When transferring the monthly installments, the investor can use ePay.bg electronic payment system. Through the ePay.bg system the client can enter the payment parameters of the selected EFP only once with the first payment and use the already created template for unlimited number of payments.

In order to be able to transfer the monthly payments via e-Pay, the client must:

• be identified at the office of Concord Asset Management and sign the Framework Agreement;
• provide a valid e-mail and phone number;
• have access to the Concord Online platform;
• be registered as a customer in the e-Pay system, which will also be available at Concord Online;
• select specific EFP parameters: fund, date, amount;
• to have a valid bank card (debit or credit) or a bank account with a Bulgarian bank or a EU Member State bank;
• provide: account number or certify that he/she holds a bank card; card expiry date, consent to use the card for periodic installments;
• to provide a declaration of consent that he/she has been informed on the exact amount of the transfer costs;
• provide consent for subscription / unlimited use of the product EFP.

Information for transactions, trades and client’s portfolio will be available in the client’s profile at Concord Online.