InterCapital AM to launch ETF on Bucharest Stock Exchange linked to Slovenian equities

InterCapital Asset Management, Croatia's leading independent investment manager with EUR 550 million in assets under management, announced plans to launch a new Exchange Traded Fund (ETF) on the Bucharest Stock Exchange.

The ETF, traded in Romanian lei (RON), will offer diversified exposure to key Slovenian sectors, including pharmaceuticals, finance, energy, logistics, telecommunications, and real estate.

Expected to go live by the end of the year, this ETF will track Slovenia's SBITOPtr index, comprising nine blue-chip stocks listed on the Ljubljana Stock Exchange.

"Our new ETF aims to bring the Slovenian market closer to Romanian investors, providing a straightforward way to invest without the need for foreign brokerage accounts or navigating liquidity issues. This product aligns with our mission to offer innovative and accessible solutions to Romanian investors," said InterCapital's President Ivan Kurtović.

The SBITOPtr index has demonstrated robust performance, with a total return of 292% over the past nine years, equalling an annualized return of 16% – outperforming the S&P 500's annualized return of 14% in the same period.

Leading companies in the index include pharmaceutical giant Krka, which ranks fourth among foreign suppliers in Romania's generic drug market, and financial firms such as NLB Group and insurers Triglav and Sava Re. Energy company Petrol, with growing investments in renewables, and Luka Koper, Slovenia's main seaport operator, are also significant constituents.

Slovenian equities offer appealing valuation metrics, with an average price-to-earnings ratio of 8.3 and dividend yields exceeding 6%, both favourable compared to developed markets in Europe and the US. Moreover, the ETF will reinvest dividends and benefit from tax exemptions on dividend income, enhancing its attractiveness for Romanian investors seeking long-term, tax-efficient growth.

(Photo source: the company)