The fund will be listed on the market within 45 days after receiving CNVM approval, said Victor Stanila, spokesman of brokerage house Tradeville, which owns Vanguard Asset Management.
ETF BET Tradeville will invest in the ten most liquid stocks traded on the Bucharest exchange which are included in the BET index, thus mirroring the index structure. Only brokers authorized by Vanguard will be able to trade shares in the ETF. Exchange-traded funds are built like conventional mutual funds but are priced and traded throughout the day like individual stocks.
The Bucharest exchange recently announced plans to stimulate trade volumes in 2012 by temporarily suspending processing and admittance tariffs for all financial instruments on the spot market, including a six-month waiver of admittance and trade fees for all local open-end funds once the first Romanian ETF is listed.
Vanguard currently manages the assets of two investment funds – Fondul Oportunitati Nationale and Fondul Vanguard Protector. At the end of June, the two funds’ assets were worth a combined 1.9 million lei (EUR420,000).
Vanguard Asset Management is owned by Tradeville, controlled by Andrei Siminel through Annaliesse Investments Limited. Siminel is the manager of New Century Holdings Advisors, which administers the Broadhurst Investments fund. (EUR1=RON4.5206)