The Bucharest Stock Exchange (BVB) kicked off a series of week-long events on Monday, November 17, to mark its 30th anniversary. Brokers, investors, and regulators discussed the evolution of Romanian equities, investment funds, and financial education. They stressed that the local stock market has offered higher returns than other types of investments.
The first day of events included two panels, one dedicated to retail investors and a second one dedicated to investment and pension fund managers. BVB CEO Remus Vulpescu opened the discussions, followed by the traditional “Ring the Bell” ceremony, the symbolic moment that marks the official opening of each trading day.
The speakers on the first panel, all young retail investors, shared their experiences, the mistakes they had made, and the lessons they had learned. One began as early as 14 years old, spurred on by a game that modeled the Forex market. Others discovered the stock market as a byproduct of entrepreneurship or as a way to save money.
The second panel tackled more of the macro aspects connected to the local stock market. One of the highlights was Pillar III, a voluntary private pension scheme which allows for investments in equities. Among the speakers, Milan Prusan, CEO of Goldman Sachs Asset Management, said that simplified messages to investors led to surpassing the threshold of one million investors in mutual funds. He also drew attention to the low level of tax deductibility for Pillar III pensions, which has remained unchanged for the last 20 years.
“When Pillar III was launched, the deductibility was EUR 400 per year, and the value of a meal voucher was under EUR 2. Today, the voucher exceeds RON 40 (approximately EUR 8), but the deductibility remains the same. Inflation has not been indexed here, and I believe an adjustment would represent an important gain for the financial industry,” Prusan explained.
Corina Cojocaru, CEO of BT Pensii, noted that young Romanians are increasingly interested in long-term savings, and that the fund she oversees attracted almost 70,000 new clients in Pillar 3. She also underlined the role of the digital environment in attracting the new generation toward savings and investments.
Mihai Purcărea, CEO and president of BRD Asset Management, highlighted the major gaps between Romania and other European states regarding investment funds. “We are the biggest real estate investors in Europe as a share of holdings, but at the bottom of the ranking when it comes to investments in shares or funds,” he said, noting that the assets of local investment funds represent “below 2% of GDP, compared to 18% in Hungary, 50% in Austria, and a European average of 118%.”
To reduce this gap, Purcărea advocated for recurring investments with small amounts, which allow investors to see the differences in returns over time. “If you keep a bank deposit or in Fidelis with 5-7% returns and compare it with a share investment over 10 years, you see the difference in your account. When you experience this difference firsthand, you truly become an investor,” he explained.
Purcărea also pointed out the fundamental logic behind long-term investments. “A business would not exist if it did not produce more than a bank deposit or a Fidelis bond. If a company does not generate value above the interest rate, it cannot survive ten years,” he said.
In turn, Cristi Pascu, Vice President of the Association of Fund Managers (AAF), emphasized the importance of financial education and digital access in attracting the new generation to fund investments. However, he pointed out that the industry must remain open to all types of investors, regardless of age or preferences.
“I can assure you that it is very simple to invest in a fund. You do not need large amounts. Recurring investment and diversification are the foundation. So, give it a try!” said Cristian Pascu.
(Photo source: Bursa de Valori Bucuresti on Facebook)
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