Asia Index gets mandate for ICICI Prudential’s CPSE ETF
Mumbai: ICICI Prudential Asset Management Co. Ltd has appointed Asia Index Pvt. Ltd, a joint venture between S&P Dow Jones Indices and BSE Ltd, to design and maintain the index for a new exchange traded fund (ETF) comprising shares of central public sector enterprises (CPSE) and other corporate entities.
In September, the government named ICICI Prudential Mutual Fund to manage the second CPSE ETF comprising public sector undertakings’ stocks in the current fiscal year with an estimated corpus of Rs6,000 crore.
The government launched the first CPSE ETF in March 2014, and this new ETF will serve as an additional mechanism for the government to monetize those CPSEs and other corporate entities which will eventually form part of the ETF basket.
The first-ever CPSE ETF, comprising shares of 10 PSUs was launched in March 2014, which garnered Rs3,000 crore for the exchequer. The mandate for managing the first CPSE ETF was given to Goldman Sachs Mutual Fund, which has since been acquired by Reliance Mutual Fund.