Dan Dascăl, CEO of BT Asset Management, was a guest on "ZF Today's Opening", where he discussed the launch of Banca Transilvania’s first ETF, investor interest, as well as recent developments on Romania’s capital market.

Context:

The Banca Transilvania Financial Group entered the ETF market by launching BT Index România ETF BET-TR, managed by BT Asset Management. The ETF, listed on the Bucharest Stock Exchange, tracks the performance of BET-TR (Bucharest Exchange Trading - Total Return), the BVB’s benchmark index, which includes the most liquid companies listed on the BVB.

Dan Dascăl on the launch of the BT Romania ETF:

• We launched this ETF at what we believe is a good time for a product of this kind. At BT Asset Management we have demonstrated we know how to manage equity funds very well — we have the broadest range of equity funds on the market — and we have reached a level of maturity that allows us to expand our product range.
  
  
• What sets this product apart is that, unlike the traditional equity funds we manage, the ETF will be traded exclusively on the Bucharest Stock Exchange. With this product we are confident we will contribute to the development of the local capital market and of the Bucharest Stock Exchange.
  
  
• The fund got off to a very good start. From the first days we saw solid liquidity and strong investor interest, and in a relatively short time we reached assets of approximately 150 million lei. The high number of trades clearly shows there is appetite for this type of product.
  
  
• We chose BET Total Return precisely because it tracks the performance of the index constituents more accurately, as it also includes dividends. You could say we set ourselves a more ambitious benchmark, but I believe it is a more appropriate one.
  
  
• We aim to mirror the index composition as closely as possible, this being the main reference point for investors. That is why we strictly observe the index allocations and keep a very small cash position, in order to track the market as precisely as possible.
  
  
• A key advantage of this ETF is accessibility: with 10 lei you can get exposure to all the companies in the index. It is very hard for an individual investor to build such a portfolio on their own.
  
  
• An ETF is, essentially, a retail product aimed at a broader audience. Of course, legal entities and institutional investors can buy it as well. Our immediate focus, however, is to take this fund to as many retail investors as possible and encourage them to take the first step toward investing.
  
  
• We do not see this ETF as a competitor to our traditional funds, but as a complementary product. The addressable audiences are different, and we believe that overall its launch will help grow assets and broaden the investor base.
  
  
• My message to investors who have bought this ETF — whether it is the first product they have purchased or a new instrument in their portfolio — is to stay close to the market and invest consistently. No amount is too small — even regular investments, for example 100 lei a month, can become meaningful over time without a large financial effort.
  
  

Comments on recent market developments:

• We are seeing a wait-and-see period, with lower liquidity, and the uncertainty caused by the political context is affecting not only the stock market, but also government bonds and the exchange rate. We hope things will stabilize as soon as possible, because we need stability for Romania’s capital market and for the state’s funding costs.
  
  
• It is true that valuations of companies listed on the BVB have increased and that the market is more expensive than a year ago, but we cannot say they are overstretched. If we compare with the Warsaw Stock Exchange, it can be seen that our companies are not more expensive. And compared with developed markets, significant differences remain, with Romania still competitive in the region.