GPW Supports the Development of Poland’s ETF Market

Warsaw, 27 November 2018

GPW Supports the Development of Poland’s ETF Market

PRESS RELEASE

• GPW, AgioFunds TFI, Beta Securities Poland and Dom Maklerski BOŚ have signed a memorandum of understanding to promote and develop the market of Exchange Traded Funds (ETF) in Poland and to educate investors
• It is the first such initiatives of Israeli capital on the Polish financial market

On 26 November 2018 at the headquarters of the Warsaw Stock Exchange, representatives of GPW, AgioFunds TFI, Beta Securities Poland and Dom Maklerski BOŚ have signed a memorandum of understanding to support product development on the Polish capital market and to educate investors. AgioFunds TFI will issue Poland’s first ETF. Dom Maklerski BOŚ will be the offeror and market maker of the Beta ETFs.

“The Warsaw Stock Exchange is working to develop new financial products to make the Polish capital market more attractive, as demonstrated by the memorandum of understanding we have signed today with AgioFunds TFI and DM BOŚ. I hope that the co-operation of the Polish fund manager and the Israeli investor will boost interest in GPW’s product offer. I would like to take this opportunity to thank our Partners for their commitment. I look forward to continued close co-operation in product development and financial education of investors,” said GPW CEO Marek Dietl.

Beta Securities Poland in partnership with AgioFunds TFI and DM BOŚ are working to develop and launch Beta ETFs, GPW’s first ETFs replicating the main indices of Polish and international stocks and bonds. Beta Securities is owned by Israeli financiers, who are participating in the development of ETFs in Poland.

The Beta ETFs based on WIG20TR addresses the needs of investors. It is the first product of this kind to be issued under Polish law, developed and managed by Polish experts using the experience of Israel’s advanced ETF market. It is an easy and transparent way for investors to participate in the value and development of Polish blue chips participating in WIG20TR, the total return index which includes dividends paid to shareholders. Dividends add in the long term to the value of WIG20TR.

 “Our objective is to offer a recognised, proven investment instrument which is popular on the markets all around the world owing to its broad range of applications. ETFs are a leading segment of the capital markets on all of the biggest stock exchanges, as well as being a central part of investment portfolios. The global ETF market is worth more than US$ 5,000 billion and includes over 5,700 ETF products which replicate a range of stock, bond, and commodity indices. ETFs are flexible, transparent, real-time instruments. We are planning to launch more ETFs next year,” said Robert Sochacki, Management Board Member of Beta Securities Poland.

GPW now lists three ETFs issued by Lyxor Asset Management.

The Beta ETFs are a good choice for investors interested in transparent low-cost investment products, and for financial advisors and asset managers who look for quick and efficient ways to build well-performing investment portfolios.

“I do believe that the co-operation in the development of ETFs will soon prove effective, attracting new Polish and international investors to our capital market. We are planning further initiatives, including education and marketing, to support the development of the ETF market in Poland,” said Marek Dietl.

“Although our ETFs are not yet available for sale, we already see huge interest,” said Adam Dakowicz, CEO of AgioFunds TFI. “Investors are asking about the operating procedures, the launch date, and the plan to implement more ETFs. This is all very encouraging.”

AgioFunds TFI S.A. is a licensed fund manager regulated under the law and supervised by the Polish Financial Supervision Authority since 2009. It offers a dozen open and closed-ended investment funds as well as several dozen funds dedicated to affluent investors. Its assets under management stood at close to PLN 7 billion at 31 October 2018.

AgioFunds TFI is 100% Polish-owned private and independent financial institution with no capital links to financial corporations. The fund manager aspires to become a leader of the new segments of the investment market.

Dom Maklerski Banku Ochrony Środowiska S.A. is one of the leading brokers in Poland. It is a long-time leader of the futures market and a GPW award winner recognised as a market maker. It offers its clients access to the exchange market, mutual funds, the energy market, as well as pension plans. It supports investors with a range of training services, research, analyst recommendations and comments.

“We boast many years of experience and active engagement as a market maker. We will take care of liquidity so investors may successfully invest and divest on the secondary market. We believe in the strong growth potential of Poland’s ETF market. We expect more ETFs to be launched in order to activate more investors,” said Radosław Olszewski, CEO of DM BOŚ.  

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The Warsaw Stock Exchange (GPW) is the biggest exchange in Central and Eastern Europe. GPW organises trade on one of the fastest growing capital markets in Europe. GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds. Towarowa Giełda Energii (TGE), a member of the GPW Group since February 2012, offers trading in electricity, natural gas, property rights and guarantees of origin, and CO2 emission allowances. Since 9 November 2010, GPW is a public company listed on Warsaw Stock Exchange. For more information, visit www.gpw.pl.