Print this article
Deutsche Bank Launches Pakistan and Bangladesh ETFs - World's First
Rajdeep Sandhu
6 November 2011
Deutsche Bank, Germany's largest bank, has launched the four new exchange traded funds including the world's first Pakistan
and Bangladesh-linked exchange traded funds. The new ETFs will be linked to the relevant MSCI
indices for Pakistan, Bangladesh, Singapore and Asia-Pacific ex Japan,
and be listed on the Singapore Stock Exchange The Bangladesh and Pakistan indices measure the
performance and capitalisation of companies in each country. Deutsche Bank said it has high aims after the success of
the Vietnam-linked ETF launched in 2008, which is now the largest
single country frontier market ETF in the world, with over $250 million
assets under management, according to a spokesperson. The bank believes Pakistan has a large potential
for future capital growth, as the country’s market cap to GDP ratio is
around 20 per cent, lower than the average of emerging markets
which is around 4 per cent. The two nations are among the 10 most populated
countries in the world. Bangladesh’s annual GDP has grown by 6
per cent on average in the last five years. Since 2005 the poverty rate
has declined from 40 per cent to 31.5 per cent. Deutsche Bank has a total of 47 ETFs now listed on
the SGX and has grown market share so far this year to over 32 per
cent.