PSX announces Alfalah Consumer Index Exchange Traded Fund launch

KARACHI: The Pakistan Stock Exchange (PSX) has announced the launch of Alfalah Consumer Index Exchange Traded Fund (ACIETF), a statement said on Monday.

A gong ceremony was held at the PSX to mark the event where PSX managing director Farrukh Khan said, “ETFs are an innovative product in global capital markets and it is exciting to have the sixth ETF being listed on PSX. Alfalah Consumer Index ETF is the first consumer focused ETF on PSX, and it will track the 13th index on the market, the Alfalah Consumer Index.”

“This is a valuable addition to the ETF sector of the bourse, which is sure to attract retail and institutional investors. I congratulate Alfalah Investments on launching this innovative new ETF.”

“Taking this opportunity to open the trading day with the launch of the newly added ETF on the bourse, I would emphasise upon brokers and AMCs to educate and promote ETFs to their customers and investors,” he added.

Khan emphasised upon brokers to train their sales teams so they can advise investors about the advantages of investing in an ETF, saying that an investor can get diversified exposure to the stock market by a single trade. This is both cost effective and simple.

Bank Alfalah Limited chief executive officer Atif Bajwa said, “It is a pleasure to be here at the launch of the new ETF, the Alfalah Consumer Index ETF, which comes under the Alfalah family. The consumer focused ETF is something that we are very excited about. Bank Alfalah and Alfalah Investments which are part of the Alfalah family will continue to play a pioneering role in bringing new products and innovation in the market.”

Alfalah GHP Investment Management Limited chief executive officer Nabeel Malik said, “In a bid to offer innovative products, Alfalah Investments has designed Alfalah Consumer Index ETF. We believe this ETF will provide investors a unique investment avenue to play the country’s promising demographics.”

“ACI-ETF focuses on sectors which are direct beneficiaries of growing consumer demand in the country which is anticipated to strengthen further in wake of economic recovery and sustained GDP growth. Pakistan’s GDP growth has always been driven by strong local demand due to very favourable demographics where a young and robust population takes the driving seat on the consumption side,” he added.

This ETF will provide as a concentrated avenue to investors that are planning to play the consumer demand story of the country, adding that this is a key milestone in Alfalah GHP Investments’ journey, as with this addition, the company will be managing funds in majority of product categories thus offering investors a variety of investment options to choose from.

The participants of the ceremony included managing director and chief executive officer PSX Farrukh H Khan; chief executive officer Bank Alfalah Ltd Atif Bajwa; chief executive officer Alfalah GHP Investment Management Limited Nabeel Malik, and senior management of the three organisations.

An Exchange Traded Fund is a type of fund that holds a basket of securities that generally tracks an underlying Index. Because there are multiple scrips within an ETF, they can be a popular choice for investors seeking diversification. ETFs may be a sound option of investment for investors who lack time or the financial acumen to make lucrative stock picks in a cost-effective manner.

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