Innovative Exchange Traded Fund launched at PSX

KARACHI: A new and innovative Exchange Traded Fund has been launched at the Pakistan Stock Exchange (PSX), the HBL Total Treasury Exchange Traded Fund, a statement said on Tuesday.

This ETF, seventh to be launched at the PSX, is a first of its kind, as it consists of a blend of government debt securities as the underlying asset class.

This security is structured in the ETF form for investors to easily invest in a diversified pool of fixed income government debt securities.

The Pakistan Stock Exchange (PSX) held a gong ceremony to formally mark the launch of HBL Total Treasury ETF.

The elaborate gong ceremony was attended by the PSX Board Chairperson Dr Shamshad Akhtar, PSX Managing Director and Chief Executive Officer (CEO) Farrukh H Khan; HBL President And CEO Muhammad Aurangzeb; chairman of the Board, HBL Asset Management Limited, Shahid Ghaffar; HBL Asset Management Limited CEO Mir Adil Rashid; HBL Treasurer Risha Mohyeddin and senior management of the three organisations, including several directors of HBL Asset Management Limited. Also present were Central Depository Company Limited CEO Badiuddin Akber and National Clearing Company of Pakistan Limited CEO Muhammad Luqman, among others.

The HBL Total Treasury ETF’s underlying assets consists of cash and cash equivalent, Treasury Bills (T-bills) and Pakistan Investment Bonds (PIBs). It is an open ended fixed income ETF, which tracks its benchmark index, the HBL Total Treasury Index (HBLTTI).

Speaking at the launch of the HBL Total Treasury ETF, Farrukh H Khan, said: “The launch of the seventh ETF on PSX, the HBL Total Treasury ETF, is an important and exciting development for the stock market, investors and all the stakeholders.”

“This ETF is the first of its kind and the investors can now easily invest in a diversified pool of fixed income government debt securities by doing a single trade through their brokers on the ready counter of the exchange. Hence, investing in the government securities is now as easy as investing in the shares on PSX,” he added.

“The introduction of the HBL ETF is part of the PSX and the mutual fund industry’s effort to provide a wide range of low-cost ETFs for the investors, allowing them to easily take exposure to different asset classes and investment strategies. This is the right time to launch this ETF, as returns on fixed income securities are high. I congratulate the HBL AMC and HBL Bank on taking the lead and launching this innovative ETF that will fulfil an important gap in the investment products range in Pakistan.”

Mir Adil Rashid said: “The HBL Total Treasury ETF has been listed and is being traded at the Pakistan Stock Exchange with an objective to provide consistent returns to the investors through active investments in a blend of short-, medium- and long-term securities issued and or guaranteed by the government of Pakistan.”

“We at HBL AMC take great pride in being the first to launch a total treasury ETF in Pakistan and are in the process of delivering many more unique and customer-centric solutions in the near future,” he added.

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