UK-based Dawn Global Management will provide technical support


UK-based Dawn Global Management Ltd has expressed interest in providing the necessary technical support and knowledge transfer training for the launch of the country’s first exchange-traded funds (ETFs).

A five-member team led by Maurits Pot, Founder and CEO of Dawn Global Management, expressed interest after holding a meeting with Professor Shibli Rubaiyat-Ul Islam, Chairman of the Bangladesh Securities and Exchange Commission, on Sunday at the office of the BSEC.

BSEC Commissioners Dr. Shaikh Shamsuddin Ahmed and Dr. Mizanur Rahman were also present at the meeting among others.

Maurits has also expressed interest in investing in the country’s first exchange-traded funds, according to a BSEC statement.

Dawn Global Management is a leading company in the field of ETF product launch and management in the frontier market.

An ETF is a type of pooled investment security that works much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other asset.

But unlike mutual funds, ETFs can be bought or sold on a stock exchange in the same way as a common stock.

“The introduction of ETFs will require market makers and Dawn Global Management has also expressed interest in providing technical assistance to market makers,” the BSEC statement read.

Some well-known companies have also expressed interest in obtaining market maker certificates, a BSEC official said.

Operating expenses for ETF formation would be kept to a minimum by international standards, which will help investors earn maximum returns, the BSEC said.

“ETFs are a less risky and much safer investment instrument,” Shibli said. He expressed hope that ETFs would become a very popular investment product among investors.

Shibli hopes the launch of this new investment product will play an important role in stabilizing the market, creating diversification and increasing the flow of cash into the market.

The BSEC Chairman assured that the commission would provide expedited services to institutes interested in issuing ETFs and issuing certificates to market makers.

Meanwhile, Dhaka Stock Exchange (DSE) recently announced that it was going to allow asset managers to launch ETFs, which would invest in certain indices, primarily DS-30, the premier index.

LankaBangla Asset Management, Shanta Asset Management and Green Delta Dragon Asset Management have recently expressed interest in sponsoring an ETF and have already submitted proposals to do so, officials said.

“The DSE is working so that at least one or two ETFs can be introduced by September this year,” said Tarique Amin Bhuiyan, Managing Director of the DSE, during a press briefing held on June 1 this year. .

The size of an ETF would be at least Tk 500 million, of which 10% would be funded by sponsors and 2.0% by the asset management company. The rest can be lifted from the public.

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