InterCapital to Launch New ETF on Bucharest Exchange for Slovenia

InterCapital Asset Management, a Croatian independent asset manager with 500 million euros in assets under management, announces its intent to launch a new Exchange Traded Fund (ETF) on the Bucharest Stock Exchange. This ETF, expected to debut by year-end, will track the SBITOPtr index, the primary equity benchmark of the Ljubljana Stock Exchange, comprising nine Slovenian blue-chip stocks.

“At InterCapital, we remain committed to our promise to Romanian investors: delivering innovation and expanding access to new, high-potential instruments. The Bucharest Stock Exchange has consistently demonstrated remarkable performance for both local and international investors, and we aim to enhance this experience by introducing a dynamic and often underrepresented market to Romanian portfolios. Our new ETF tracking the performance of the Slovenian market will provide a seamless way to invest, bypassing the complexities of foreign brokerage accounts and liquidity challenges. ETFs are among the most straightforward tools for portfolio diversification, and we are confident this product will resonate with Romanian investors. Over the past nine years, the SBITOPtr index delivered total returns of 292%, outperforming the S&P and matching the strong performance of the BET-TRN index. In just a few weeks, our new ETF will be tradable in RON directly on the Bucharest Stock Exchange, offering diverse access to the Slovenian market, available to all interested investors through all authorized intermediaries in Romania,” stated Ivan Kurtovic, Chairman of the Management Board at InterCapital Asset Management.

Slovenia represents one of the most developed post-communist economies in Europe, with an equity market that has outperformed many popular peers in recent years. With just 11% of Romania’s population, approximately 2 million people, Slovenia generates 20% of Romania’s GDP, with a GDP per capita of €30,160, nearly 1.8 times that of Romania’s, positioning it close to Spain and slightly above Czechia, according to Eurostat’s 2023 data.

Once launched, the InterCapital SBITOPtr UCITS ETF will provide Romanian investors with access to a diverse portfolio of Slovenian stocks. The index’s largest constituent, Krka, is a prominent producer of generic pharmaceuticals, supplying over 70 countries and ranking fourth among foreign suppliers in Romania’s generic drug market. The index also has significant representation from the financial sector, with a balance of banks and insurance companies focused on South-Eastern Europe – bank NLB Grupa and insurance companies Triglav and Sava Re. Financials are well-positioned to benefit from a relatively higher interest rate and resilient growth environment. In Slovenia, energy exposure is represented by Petrol, a major regional fuel retailer with increasing investments in renewable energy solutions to support the green transition. Luka Koper, another key index component, manages Slovenia’s primary seaport, a strategic link between Central Europe and global markets. The index also features telecom operator, Telekom Slovenia, chemical processing company, Cinkarna Celje, and a real estate company, Equinox.

Slovenian companies have traditionally offered high dividends, contributing significantly to returns. Over the nine-year period ending on November 1, 2024, both the SBITOPtr and BET-TRN indices achieved an impressive total return of 292% in euros, reflecting a 16% annual return. In Slovenia, approximately half of this return is attributed to dividends, with the remainder driven by price appreciation – both surpassing the S&P 500, which offered a 14% annual return over the same period. Importantly, the SBITOPtr ETF reinvests all dividends received and is exempt from dividend taxation, allowing it to benefit from gross dividends.

Slovenia’s strong earnings growth has driven price increases, making current valuations attractive. Investors in the SBITOPtr index benefit from an average price-to-earnings (P/E) ratio of 8.3, lower than Romania’s and significantly below the ratios in developed European markets and the U.S. Meanwhile, Slovenian dividend yields remain appealing at over 6%.

InterCapital Asset Management has been present in Romania since 2023, offering Romanian investors access to the BET-TRN index through the BET-TRN UCITS ETF since May 2024. This ETF provides a diversified portfolio across 20 blue-chip companies listed on the Bucharest Stock Exchange, blending defensive assets with dynamic local entrepreneurial firms. This product enables even small-scale investors to gain exposure to Romania’s local market, supporting a diversified investment portfolio with modest entry capital.