Bangladesh Nears Launch of Its First ETF

Bangladesh is on the verge of launching its first-ever Exchange Traded Fund (ETF), the LB Multi Asset Income ETF. The ETF’s initial size will be Tk 1 billion, with the sponsor and asset manager contributing Tk 100 million and Tk 20 million, respectively. The remaining Tk 880 million will be raised through private placement and an initial public offering (IPO). LankaBangla Investments serves as the sponsor, while LankaBangla Asset Management is the asset manager. The ETF will be actively managed, with its benchmark tied to the yield of 10-year Treasury bonds. Once listed on the Dhaka Stock Exchange, market makers will help maintain ETF unit trades within a range around the net asset value (NAV).