The Pakistan Stock Exchange (PSX) has created a new and innovative Exchange Traded Fund, the HBL Total Treasury Exchange Traded Fund, according to a statement released on Tuesday.
This ETF, the sixth to debut on the PSX, is the first of its kind, as its underlying asset class is a combination of government debt instruments.
This instrument is designed as an ETF so that investors can participate in a diverse pool of fixed-income government debt securities with relative ease.
The Pakistan Stock Exchange (PSX) inaugurated the HBL Total Treasury ETF with a gong ceremony.
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, attended the elaborate gong ceremony. Badiuddin Akber, CEO of Central Depository Company Limited, and Muhammad Luqman, CEO of National Clearing Company of Pakistan Limited, were also present.
The underlying assets of the HBL Total Treasury ETF are comprised of cash and cash equivalents, Treasury Bills (T-bills), and Pakistan Investment Bonds (PIBs). It is a fixed-income ETF with open-end trading that tracks its benchmark index, the HBL Total Treasury Index (HBLTTI).
Farrukh H. Khan stated at the introduction of the HBL Total Treasury ETF, “The launch of the seventh ETF on PSX, the HBL Total Treasury ETF, is a significant and exciting development for the stock market, investors, and all other stakeholders.”
“This exchange-traded fund is the first of its kind, and investors can now participate in a diversified pool of fixed-income government debt securities with a single trade through their brokers at the exchange’s ready counter. Consequently, investing in government securities is now as simple as investing in shares on the PSX,” he continued.
“The creation of the HBL ETF is part of the PSX’s and the mutual fund industry’s endeavour to provide investors with a diverse selection of low-cost ETFs, allowing them to conveniently gain exposure to numerous asset classes and investing strategies. The timing is ideal for the debut of this ETF, given returns on fixed income instruments are now high. I commend HBL AMC and HBL Bank for taking the initiative and creating this new ETF that will fill an essential void in Pakistan’s investment product selection.”
Mir Adil Rashid stated, “The HBL Total Treasury ETF has been listed and is being traded on the Pakistan Stock Exchange with the goal of providing consistent returns to investors through active investments in a mix of short-, medium-, and long-term government-issued or guaranteed securities.”
He added, “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 innovative and client-centric solutions in the near future.”