Nearly nine months after regulatory approval, LankaBangla Asset Management has yet to launch the LB Multi Asset Income ETF due to low interest from eligible investors. Approved in October by the Bangladesh Securities and Exchange Commission, the ETF aimed to raise Tk 1 billion, with Tk 700 million from eligible investors, Tk 100 million from the sponsor, Tk 20 million from the AMC, and Tk 180 million through an IPO. The ETF could start the IPO if Tk 500 million was raised from eligible investors, increasing the public portion to Tk 380 million. Despite extending the subscription period to June 3, the required funds were not collected, leading to another extension request. ETFs, a basket of securities traded like stocks, can be actively or passively managed. LankaBangla’s ETF is actively managed. Since finalizing ETF rules in 2017, no ETFs have launched in Bangladesh.
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