Alfalah Consumer Index Exchange Traded Fund

Alfalah Consumer Index Exchange Traded Fund (ACIETF) is an open-ended scheme that is traded on Pakistan Stock Exchange and shall aim to track the performance of the Benchmark index. The index shall be periodically re-balanced & reconstituted as specified in the offering document in order to provide long-term capital appreciation and dividends yield to the investors. The Index strategy would be consumer-focused and would comprise a maximum of 20 stocks. The ETFs focus on sectors that are direct beneficiaries of growing consumer demand in the country which is anticipated to strengthen further in wake of economic recovery, low-interest-rate environment & various packages announced by the Government, etc. Pakistan’s GDP growth has always been driven by strong local demand due to very favorable demographics where a young and robust population takes the driving seat on the consumption side. The ETF therefore will provide a concentrated avenue to investors that are planning to play the consumer demand story of the country.

Security Selection

Top companies among pre-defined sectors that have the highest free float-based market cap in the sector on index rebalancing and/or Addition/deletion dates i.e. 30th June and 31st December of each year. Stocks with a 1-year daily average trading volume of 100,000 shares or above.

Determination of weight

Based on free float Market Capitalization, the Maximum weight of a single stock in the index will be 10%. Index weight in excess of 10% of any single stock shall be distributed to the remaining stocks based on their respective weight in the index and subject to the maximum limit. Weights adjusted for fractional shares after rounding off will result in the cash component in addition to 1% allocated on the onset.