• A new investment solution for clients with significant financial resources;
• Tailor-made: Depending on the risk profile and the earnings expected by investors, they will hold custom-made portfolios;
• Professional and discretionary long-term portfolio management and dedicated Portofolio Manager.

Bucharest, March 14th, 2023 – OTP Asset Management Romania announces the launch of a  new investment product, Discretionary portfolio management, expanding its range of investment products available to its clients, individuals and legal entities. By launching this product, the company offers a complementary long-term investment solution to its customers. 

The discretionary portfolio management is a form of investment management in which the decision to buy and sell the financial instruments of the portfolio, are taken on behalf of the clients, by investment professionals, such as OTP Asset Management Romania SAI SA. 

Thus, all the responsibility and decisions involved in the investment process are the responsibility of the asset manager, through an Investment Committee, specially set up for this purpose. Moreover, the continuous monitoring of the portfolio is the responsibility of a dedicated Portfolio Manager for the client. In this way, clients who hold Discretionary portfolios can focus on their own business, on their core activity through which they obtain their income, leaving instead, the management of the portfolio to investment professionals. 

"Asset management requires capital markets knowledge, the capacity for analysis and synthesis, building a strategy, making decisions under pressure, but also tens and hundreds of hours of research, analyzing companies, news flows and market events. As technical people in our area of expertise, as capital market specialists, we are trained to do all of the above and make decisions, but this skills are backed up by many years of experience and with many hours dedicated to the activity. Practically, this is our job and we can do it for our clients, so that they can enjoy their precious time, but also have the mental ease of not having to make certain decisions, maybe not easy to make in difficult market moments" says Dan Popovici, CEO OTP Asset Management Romania.

He adds "For some time now, we have identified a specific need for a clear segment of clients, that is to say premium clients who have significant amounts of money at their disposal, and they obviously do not want to keep them «under the mattress» or in banking deposits. These customers are consciously planning their financial resources, in an effective way by accessing the services of investment professionals. These customers know very well that time is money, so they decided to have time work in their favor."

In order to open a Discretionary Portfolio, the minimum amount is RON 500,000 or EUR 100,000, the product being accessible by both retail and institutional investors. After the necessary profiling process an investment strategy and specific terms of the contract are outlined, on the basis of which the investment portfolio is actually built, in order to best fit customer’s needs. 

The minimum contracting period is one year. However, the customer may terminate the contract at any time in accordance with applicable law. It is important to note that investments in financial instruments are sometimes volatile, so we recommend considering a period of more than 3 to 5 years.

Discretionary mandates or Discretionary portfolios are a very important segment of the asset management industry at European level. Thus, according to EFAMA statistics, at european level, about 43% of total assets under management are represented by discretionary mandates. In Europe, the value of discretionary mandates granted by retail clients is approximately 560 bn. euro.

Like any investment, holding a Discretionary portfolio witholds its risks. Mainly, the investments are carried out on global or local stock exchanges, trading mainly shares, but also fixed income instruments. By their nature, the market values of these assets can fluctuate significantly, even from day to day. Thus, the value of the portfolio may fall below its original value.
Depending on the type of the risk profile, the contract details and the investment strategy may vary. Thus, before entering into a contract, potential customers are presented with the relevant risks that may affect them.

About OTP Asset Management Romania SAI S.A.

Present on the local market since 2008, OTP Asset Management Romania SAI SAI S.A. is among the most important investment fund managers in Romania, with assets under management of over RON 524 million at the end of February 2023. The company manages a diverse range of investment funds, offering the possibility to access investments in stocks, through OTP Expert, OTP AvantisRO, OTP Innovation, OTP Global Mix, OTP Premium Return and OTP Dinamic, in the real estate sector through OTP Real Estate & Construction, but also investments in government securities and bonds, through OTP Bonds, OTP Euro Bond,  OTP Dollar Bond and OTP ComodisRO. Currently, the company serves over 14,200 investors, from the retail segment and corporate clients, in 11 open-end investment funds and the Discretionary Individual Portfolios service.

About OTP Bank România

OTP Bank Romania is the subsidiary of OTP Group, a universal bank with a very good presence in Central and Eastern Europe, which offers complete financial solutions, being active both in the retail and corporate segment. Starting with 2019, OTP Bank is going through an extensive transformation process, through which it aims to grow significantly on the business segments and also to create a better customer experience. With a constantly growing team that embraces change and unlocks its potential, OTP Bank Romania builds a culture of trust at every level of the organization. The bank ranks 9th, by assets, in the ranking of banking players in Romania, according to the latest NBR data. In Romania, the OTP Group members are: OTP Bank Romania, OTP Consulting, OTP Leasing, OTP Asset Management, OTP Factoring, OTP Advisors and OTP Bank Romania Foundation.

    
For more info:
Communication Team 
OTP Bank România, www.otpbank.ro 
E-mail: comunicare@otpbank.ro