Mathematical models of multi-funds, which aim to achieve increasing profitability and an increased amount of the second pension, were presented by experts from the Bulgarian Association of Supplementary Pension Insurance (BADDPO) at a forum for the 30th anniversary of the Bulgarian Actuarial Society, the association announced, writes pariteni.bg.

“The introduction of multiple funds is recommended by the Organisation for Economic Co-operation and Development (OECD) as a step towards modernising the stable and well-regulated pension system in Bulgaria,” BADDPO President Evelina Miltenova said in the statement.

“Multi-funds, which offer a variety of investment options at different life stages, are an essential tool for achieving higher replacement income for future retirees in the long term,” she added.

Among the main highlights of the BADDPO presentation was the analysis of investment strategies and the multi-fund system in the context of the policyholders’ life cycle, following OECD good practices and recommendations.

The association’s experts presented mathematical models that allow for estimating profitability depending on the structure of the investment portfolio and different investment conditions.