Business Forum • 5 September, 2024 at 10:18 AM
InterCapital Asset Management, Croatia's leading independent asset manager with €550 million in assets under management, announces enhanced liquidity for its latest ETF, which tracks the evolution of BET-TRN index, listed on the Bucharest Stock Exchange under the symbol ICBETNETF, starting September 5. This improvement follows the addition of InterCapital Securities as a second market maker, complementing the existing support from Investimental, the newest broker on the Romanian capital market.
"The addition of a second market maker marks a significant step in boosting the depth and liquidity of our ETF, which is anticipated to lead to more favorable trading conditions for investors. With assets under management now exceeding €14 million – including €5 million contributed directly from investors on the Bucharest Stock Exchange, we have already surpassed our initial three-month projections. This strong demand highlights the appeal and simplicity of investing in an ETF, especially one that offers the most attractive cost structure in the market. We are thrilled by this momentum and remain committed to delivering exceptional value to both institutional and retail investors, confident that today's development will strengthen our product's market position even further," stated Ivan Kurtovic, Chairman of the Management Board at InterCapital Asset Management.
A market maker plays a crucial role in ensuring the smooth trading of financial instruments, such as ETFs, by continuously quoting buy (bid) and sell (ask) prices. This helps maintain liquidity, allowing investors to easily enter and exit positions without significant price fluctuations. Since the ETF's listing on the Bucharest Stock Exchange, it has benefited from market-making services provided by Investimental. Having two market makers is even more beneficial, especially in more volatile days. This ensures better pricing for investors and reduces the cost of trading, making the ETF more accessible and attractive to a wider range of market participants.
InterCapital BET-TRN UCITS ETF was launched on the Bucharest Stock Exchange on May 29, 2024, and it is the first and the only ETF that tracks the performance of the BET-TRN index, reflecting both the performance of the BET index constituents and the reinvestment of the net dividends distributed by them. In this way, the ETF offers diversification across the 20 blue-chip companies listed on the Bucharest Stock Exchange, which include both defensive stocks and dynamic local entrepreneurial companies. Investors moreover benefit from exposure to the local market even with small amounts that would not normally allow them to build a diversified investment portfolio. Currently, the ETF is tradable at about 77 lei.
Access to the BET-TRN is available at the lowest management fee of an ETF listed on the Bucharest Stock Exchange of 0.6%, providing investors with a superior net return, maximizing the growth potential of their investment. Year-to-date, the BET-TRN index rose 24%, surpassing key reference indices such as S&P 500 (+17%), MSCI Europe and MSCI Frontier (+10%), and MSCI Emerging (+7%).
With nearly 20 years of experience and a portfolio that includes 19 classic funds and 5 ETFs, InterCapital is the largest independent asset management company in Croatia managing €550 million. Over the 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 the best global standards and practices.