Investimental and InterCapital Asset Management Announce the Launch of the InterCapital BET-TRN UCITS ETF in Early 2024
Investimental, the newest broker on the Romanian capital market, and InterCapital Asset Management, the largest independent asset manager in Croatia with assets under management of 420 million euros, announce the signing of an agreement to launch a new Exchange Traded Fund (ETF) on the Bucharest Stock Exchange. The ETF, which is expected to be launched at the beginning of next year, will track the performance of the BET-TRN index, which includes the 20 Romanian blue-chip companies such as Banca Transilvania, Hideroelectrica, OMV Petrom or Romgaz, to mention a few. The BET-TRN stands for “Total Return Net”, indicating that the index reflects not only the price movements of the blue-chips but also assumes that the net dividends are reinvested.
“We are confident that the ETF we are launching with Investimental will represent a compelling investment option for both retail and institutional investors in Romania at a competitive price. InterCapital invests in Romania for almost 15 years, and we believe in the potential of the local capital market, especially considering that the Romanian companies offer some of the most attractive dividend yields in Europe. Consequently, we want to enhance the visibility of the Bucharest Stock Exchange and its outstanding performance throughout the region. Today, with the ETF already listed on the Zagreb Stock Exchange, we have assets under management of 5.5 million euros directed into the Romanian market. In few weeks, our ETF will also be available for trading in RON directly on the Bucharest Stock Exchange, offering diversified investment opportunities for all those interested in the dynamic Romanian capital market,” stated Ivan Kurtovic, Chairman of the Management Board at InterCapital Asset Management.
The InterCapital BET-TRN UCITS ETF, which is expected to start trading on the Bucharest Stock Exchange in the first quarter of 2024, will represent an important instrument on the local capital market, offering investors diversification across the 20 most liquid Romanian companies included in the BET, including both defensive stocks as well as dynamic local entrepreneurial companies. Consequently, investors will be able to gain exposure to the local market by investing even small amounts that normally would not permit them to build a diversified investment portfolio.
Access to the BET-TRN index replication will be available at the lowest ETF management cost listed on the BVB of 0.8% at the time of the launch, but with a possibility to drop to 0.6% once the total assets under management will overpass 10 million euros. This is important as the management costs are indirectly borne by investors and affect the net yield they receive. Keeping costs low ensures that investors effectively benefit from market performances, thus maximizing the growth potential of their investment.
Intercapital Asset Management has already launched the ETF on the BET-TRN index in the region, the ETF being traded in euro on the Zagreb Stock Exchange as of May 31st, 2023. The ETF will also be launched, in early January 2024, on the Ljubljana Stock Exchange. The current assets under management of the ETF are 5.5 million euros, but the management expects the AUM to overpass 30 million euro by the end of 2024 driven by demand both locally and internationally. Year-to-date, the BET-TRN index registered a 31% increase, outperforming S&P 500 and STOXX Europe 600.
Mihaela Bîciu, CEO of Investimental, commented: “With the launch of the InterCapital BET-TRN UCITS ETF, we are opening extraordinary opportunities for investors of all levels. This is not just an investment instrument, but another step forward in our effort to bring the capital market closer to the general public. We are excited to facilitate access to top companies on the BVB, offering a simple and efficient way for investors who may not have the experience or resources to navigate the complexities of the capital market on their own. We believe that everyone deserves easy and affordable access to the stock market, and this ETF is an important step in that direction.”
Investimental, as an Authorized Participant to the Bucharest Stock Exchange, will act as a Market Marker for the ETF, ensuring its daily liquidity following the approval from the Bucharest Stock Exchange. By actively providing buy and sell quotes throughout the trading day, Investimental will ensure that investors can trade ETF shares easily. Moreover, in the capacity of a Market Maker, Investimental will aim to narrow the bid-ask spread, the difference between the highest buying and lowest selling prices, thereby reducing the cost of trading for investors.
This collaboration is a strategic move for Investimental, aligning with its mission to foster the Romanian capital market’s growth and evolution.
____________________
About InterCapital Asset Management
With nearly 20 years of experience and a portfolio that includes 19 classic funds and 4 ETFs, InterCapital is the largest independent asset management company in Croatia managing EUR 420 mil. Over years, InterCapital demonstrates expertise and innovation in investment fund management with multiple products and services launched. Namely, InterCapital is 1st SEE asset manager that has pivoted from classic UCITS funds into ETFs and digital robo-advisory space with its APP Genius. InterCapital has a clear path to offer cost effective and attractive products across SEE region following its mission to develop regional capital markets through implementation of best global standards and practices.
About Investimental
Investimental is the first broker authorized by the ASF for stock exchange transactions on the BVB in the last 14 years, offering access to both the local and the American exchange. The project is built and developed by a team of professionals with vast experience in financial services. Investimental believes in a flexible approach to connecting the investment market with those who want to get more from their money through modern and user-friendly solutions.
Investimental has created Investimentor, an educational program designed to offer learning and development opportunities for investors of all experience levels. The goal is to encourage investors to explore capital market opportunities and make informed decisions regarding their investments.