Dan Dascăl, CEO of BT Asset Management, was a guest on the show “ZF Deschiderea de astăzi, ” where he discussed the launch of Banca Transilvania’s first ETF, investor interest, and recent developments in the Romanian capital market.

Context:

Banca Transilvania Financial Group has entered the exchange-traded fund market with the launch of the BT Index Romania ETF BET-TR, managed by BT Asset Management. The ETF, listed on the Bucharest Stock Exchange, tracks the performance of the BET-TR (Bucharest Exchange Trading - Total Return), the BSE’s benchmark index, which includes the most liquid companies listed on the BSE.

Dan Dascăl on the launch of the BT Romania ETF:

• We launched this ETF at a time we believe is opportune for a product of this kind. At BT Asset Management, we have demonstrated that we are highly skilled at managing equity funds—we offer the widest 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. We are confident that this product will contribute to the development of the local capital market and the Bucharest Stock Exchange.
  
  
• The fund got off to a very strong start. From the very first days, we saw strong liquidity and high investor interest, and in a relatively short time, we reached approximately 150 million lei in assets. The high volume of transactions clearly shows that there is strong demand for this type of product.
  
  
• We chose the BET Total Return Index precisely because it provides a more accurate picture of the performance of the companies in the index, since it includes dividends. One might say that we have set ourselves a more ambitious benchmark, but I believe it is a more accurate one.
  
  
• We aim to replicate the index’s structure as closely as possible, as it serves as the primary benchmark for investors. For this reason, we strictly adhere to the index’s weightings and maintain a very low cash position, precisely to track market movements as accurately as possible.
  
  
• A major advantage of this ETF is its affordability: essentially, with just 10 lei, you can gain exposure to all the companies in the index. It is very difficult 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 also purchase them. However, our immediate focus is to market this fund to as many retail investors as possible, encouraging them to take their first step into investing.
  
  
• We do not view this ETF as a competitor to our traditional funds, but rather as a complementary product. It targets a different audience, and we believe that, overall, its launch will help grow our assets and expand our investor base.
  
  
• My message to investors who have purchased this ETF is—whether it’s the first product they’ve bought or a new addition to their portfolio—to stay in touch with the market and invest consistently. No amount is too small—even regular investments, such as 100 lei per month, can add up over time without requiring a significant financial effort.
  
  

Statements regarding recent market developments:

• We are seeing a period of uncertainty, with lower liquidity, and these uncertainties caused by the political context are affecting not only the stock market but also government bonds and the exchange rate. We hope that things will stabilize as soon as possible, because we need stability for Romania’s capital market and for the government’s borrowing costs.
  
  
• It is true that the valuations of companies listed on the Bucharest Stock Exchange have risen and that the market is more expensive than it was a year ago, but we cannot say that they are excessive. If we compare the valuations of companies listed on the Warsaw Stock Exchange, we can see that our companies are not more expensive. Furthermore, when we compare ourselves to developed markets, there are significant differences, and Romania remains competitive in the region.