Dan Dascăl, CEO BT Asset Management, was invited to the show „ZF Opening of today”, where he spoke about the launch of the first ETF of Banca Transilvania, investor interest, as well as about recent developments in the Romanian capital market.

Context:

Financial Group Banca Transilvania entered the exchange-traded funds market through the launch BT Index Romania ETF BET-TR, administrated by BT Asset Management. The ETF, listed on the Bucharest Stock Exchange, tracks the performance of BET-TR (Bucharest Exchange Trading - Total Return), the reference index of the BSE, which includes the most liquid companies listed on the BSE.

Dan Dascăl about the launch of BT Romania ETF:

• We launched this ETF at a time we consider opportune for a product of this kind. At BT Asset Management we have demonstrated that we know how to manage equity funds very well – we have the richest offer of equity funds on the market – and we have reached a level of maturity that allows us to expand the range of products.
  
  
• The particularity of this product lies in the fact that, unlike the classical equity funds managed by us, the ETF will be traded exclusively on the Bucharest Stock Exchange. With this product, we are convinced that we will contribute to the development of the local capital market and the Bucharest Stock Exchange.
  
  
• The start of the fund was a very good one. We saw a consistent liquidity and a high interest from investors right from the first days, and in a relatively short time we reached assets of approximately 150 million lei. The large number of transactions clearly shows us that there is an appetite for this type of product.
  
  
• I chose BET Total Return precisely because it tracks more accurately the evolution of the companies in the index, as it also incorporates dividends. It could be said that we aimed for a more ambitious benchmark, but I think it is a fairer benchmark.
  
  
• We aimed to replicate the index structure as faithfully as possible, this being the main benchmark for investors. That is why we strictly adhere to the allocations in the index and maintain a very low cash position, precisely in order to track the market's evolution as accurately as possible.
  
  
• An important advantage of this ETF is accessibility: practically, with 10 lei you can have exposure to all the companies in the index. It is very difficult for an individual investor to build such a portfolio on their own.
  
  
• The ETF is, essentially, a retail product, which is addressed to a wider audience. Of course, legal entities can also buy, institutional investors can also buy. Our immediate focus, however, is to address this fund to as many retail investors as possible, to encourage them to take the first step towards investments.
  
  
• We do not see this ETF as a competitor to our traditional funds, but as a complementary product. The target audience is different, and we believe that, overall, its launch will contribute to asset growth and the development of the investor base.
  
  
• My message to the investors who have purchased this ETF is – whether it is their first acquired product or a new instrument in the portfolio – to stay close to the market and invest consistently. No amount is too small – even regular investments, for example 100 lei per month, can become significant over time, without a large financial effort.
  
  

Statements about recent developments in the market:

• We observe a waiting period, with reduced liquidity, and these uncertainties caused by the political context impact not only the stock exchange but also government bonds and the exchange rate. We hope that things stabilize as soon as possible, because we need stability for the Romanian capital market and for the state's financing costs.
  
  
• It is true that the valuations of companies listed on the BVB have increased and that the market is more expensive than a year ago, but we cannot say that they are exaggerated. If we compare the valuations of companies listed on the Warsaw Stock Exchange, it can be observed that our companies are not more expensive. Furthermore, if we compare ourselves with developed markets, there are significant differences, and Romania remains competitive in the region.