KARACHI, Feb 5: Jahangir Siddiqui & Company Limited (JSCL) has launched Pakistan's first bond index which will provide benchmark to fund managers to evaluate their funds performance.
According to a press release issued here on Saturday the index would be called JS Pakistan Government Bond Index (JSPGBI). The base year of the index would be July 1, 2004. The index value would be made public starting from Feb 14, 2005.
The JSPGBI comprises of Government of Pakistan issued medium- to long-term bonds with maturities of one year and above. This index aims to replicate investment portfolios of banks, insurance companies, employees' funds, trusts, etc.
Currently, there is no such indictor in the fixed income market in the country. The JSPGBI would also provide indication about the movement of interest rates in the economy.
The press release further said that the idea of the bond index was initiated by the State Bank of Pakistan. Later on various meetings were held with the market participants in this connection.
The JSCL has carried out a detailed research on the bond indices. Many global models were looked at in order to devise a representative index for the local government bond market. International consultation was also sort in order to devise a better benchmark, the release adds.
