OTP Group launches Central and Eastern European index-tracking equity fund - now available on BSE
From now, investors can buy units of the OTP CETOP UCITS ETF, which pools the shares with the highest turnover and capitalisation in seven countries of the Central and Eastern European region. OTP Group's gap filling product will give private and institutional investors, as well as investors from Western Europe, overseas and the Far East, access to the top corporate league of one of the world's fastest growing regions, even without local knowledge of the region.
Shortly after the Budapest Stock Exchange (BSE) launched the CETOP NTR index, which represents the Central and Eastern European markets, OTP Group have launched an index-tracking ETF for private and institutional investors, which includes the stocks with the highest turnover and capitalisation in seven countries of the region. The OTP CETOP UCITS ETF includes blue chips listed on the Czech, Croatian, Polish, Romanian, Slovak and Slovenian stock exchanges.
"Central and Eastern Europe is one of the most dynamically developing regions in the world today, with significant growth potential, which can be an exciting opportunity for any investor," said Gábor Fazekas, Director of OTP Global Markets. He added: private and institutional investors from Western Europe, overseas and the Far East often find it difficult to access local markets in our region, either because they are simply too small for a US pension fund, for example, or because they are too remote and exotic for a private investor in Hong Kong.
The OTP CETOP UCITS ETF can change this situation, allowing investors to easily invest in the leading stocks of the Central and Eastern European region without having to adapt to local market peculiarities. The index basket, with up to 25 components, is composed of the most actively traded and biggest capitalisation stocks from the stock exchanges of these seven countries, aligned to the CETOP NTR index, which is rebalanced every six months. "The newly available equity fund will play an important role in OTP Fund Management's product range and could also be an important investment product for OTP Group, which is present in 11 countries in the region, as it can offer the best stock market performance in the region," said Tibor Turner, General deputy CEO of OTP Fund Management.
"The ETF development implemented by OTP Group is an important milestone, both in terms of the product offering of the Budapest Stock Exchange and the regional weight of the domestic stock exchange and the national economy. While the CETOP NTR index serves as a benchmark for the performance of the prime stocks of the region's capital markets, the ETF linked to the product takes the interested investor one step further, as it provides direct access to the stock market trends of Central European stock exchanges," said Richárd Végh, CEO of the Budapest Stock Exchange.
The OTP CETOP UCITS ETF was listed on BSE with a nominal value of EUR 10. The units behave like a stock exchange share: they can be bought and sold continuously during trading hours at the current market price. OTP Bank as market maker will provide liquidity in the ETF market. Like the underlying CETOP NTR index, the ETF will not pay dividends to investors, but will reflect the real performance of the markets through the recapitalisation of the dividends received. Further details on the Fund are available on the OTP Fund Management website.
The information is not complete. The above information is provided for information purposes only, is intended to attract attention and constitutes advertising under the legislation in force. The information contained herein does not constitute an offer to the public, an investment recommendation, investment advice or investment analysis, nor an offer, proposal or invitation to execute a transaction.
Before making an investment decision, please read the Fund's Disclosure and Management Regulations, the Key Information Document in order to fully understand the potential risks and benefits of the relevant investment decision. These documents are available on the websites of OTP Bank (www.otpbank.hu) and OTP Fund Manager (https://www.otpbank.hu/otpalapkezelo/hu/fooldal), as well as at the OTP Bank's distribution branches.
Further terms and conditions relating to the stock exchange orders of the Fund can be found in the OTP Bank's business rules and notices, which are available at the OTP Bank's branches dealing with securities orders and on the OTP Bank's website (www.otpbank.hu).
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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