PSX to roll out fund to lure middle-class investors

KARACHI: Pakistan Stock Exchange (PSX) is at an advance stage of rolling out a new fund by the start of the next fiscal year to attract middle-class investors towards the capital market, its top official said on Thursday.

“We want to attract country’s middle class comprising 40 million to the investment avenue, which has been the best performing among all asset classes,” Managing Director PSX Richard Morin told The News.

Morin said return, including dividends of KSE 30-share Index of PSX climbed eight times during the last 10 years.

The bourse planned exchange traded fund (ETF) by the second half of 2018, which Morin believed would be the primary tool to attract country’s middle class to the stock investment. ETF is an index tracking investment fund and enables investor to take exposure in all the constituents of the benchmark index in a single transaction.

MD PSX said the prime focus of the management is to enhance investor protection. “We have drafted several investor protection measures, which are being discussed with the SECP (Securities and Exchange Commission of Pakistan).”

Morin said there is always a room for improvement and the management is committed to fill the gap and bring the investor protection system at par with global standards. The bourse is also in the process of streamlining account opening process.

Earlier, MD PSX rang the traditional gong to mark the 109th International Women’s Day.

Speaking on the occasion, he said the PSX is building, empowering and motivating the team managing the stock exchange.

“This is the 7th organisation that I am leading and women have played a key role in managing the affairs every place with PSX being no exception,” he added. “Young, talented and dynamic women are making significant contribution in our success.”

Morin said PSX is striving to provide women with a safe and harassment-free environment. “PSX has zero tolerance for disrespectful behaviour towards women for it is good business.”

The board’s independent director Rahat Kaunain Hasan said the PSX believes in empowerment of women and enhancing their role purely on merit. Hasan appreciated the regulator for making it mandatory to have female representation on the boards of public listed companies as well as public interest companies.

Jamshed Qazi, a representative of the United Nations in Pakistan said the bell for gender equality has been rung. “Ringing the gong today, PSX has joined 50 stock exchanges around the world unlocking the power of women for growth and success.”

Qazi said ensuring women empowerment is the only investment that is sound.

PSX held a ceremony on International Women’s Day: Ring the bell for gender equality in collaboration with World Bank Group, Women on Board and UN Women at the bourse.