OTP Asset Management Romania launches open ESG investment fund OTP Innovation – The Diplomat Bucharest


OTP Asset Management Romania has launched OTP Innovation Fund, the first fund in Romania that offers the possibility of investing, internationally, in companies that allocate a significant part of their income to research and development (R&D).

OTP Innovation intends to have a diversified portfolio on various sectors, so that the investments will be directed towards companies in various fields of activity, such as technology, bio-pharmaceutical,
e-commerce, automotive, etc.

All these companies allocate significant budgets (in proportion to their turnover) to the financing of R&D programs. R&D includes activities that companies undertake to innovate and introduce new products and services that have a positive effect, both on society as a whole and on the financial performance of the respective companies. To identify these companies, OTP Asset Management Romania uses an important indicator: R&D intensity. This indicator is defined as the ratio between a company’s R&D expenditure and the company’s sales.

“Even though there is strong emotion at the moment about the war in Ukraine, we position ourselves as long-term investors, so our strategy, our investment policy and our concerns are firmly anchored in the future. Our responsibility is to currently manage the funds in our portfolio in a professional manner, but also to have a broad view of the opportunities that will add value to our clients’ investments, in the future,” said Dan Popovici, CEO, OTP Asset Management Romania Regarding the launch of this fund and aspects related to ESG criteria, he considers that “the fund represents an opportunity to align clients’ investments with personal values”.

OTP Innovation is aimed at retail and institutional clients who are prepared to accept high market risk and who wish to invest in companies with medium and long-term growth potential. The recommended investment period is at least 3 years.

Investors can use two different classes of fund units, class L for investments in lei and class E for euros. The minimum amount required to invest in Class L is 50 lei, for Class E it is 50 euros, and for subsequent subscriptions, 50 lei and, respectively, 10 euros. The fund will be distributed through the branch network of OTP Bank Romania and the Internet Banking platform, OTPdirekt.

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