AgioFunds, Beta Securities launch Polish government bond ETF on GPW

Jan 17th, 2022 | By | Category: Fixed Income

AgioFunds and its listing partner Beta Securities Poland have launched a new ETF on GPW (Warsaw Stock Exchange) providing exposure to Treasury bonds issued by the Polish government.

Beta Securities Poland Polish Treasury bonds ETFs

Radosław Olszewski, Robert Sochacki, and Izabela Olszewska celebrate the listing of the Beta ETF TBSP on GPW.

The Beta ETF TBSP (ETFBTBSP PL) is the eleventh ETF to list on GPW and the first to offer access to the fixed income asset class.

The fund is linked to the TBSP Index, Poland’s first official Treasury bond index

Developed by GPW Benchmarks, the indexing division of GPW, the index comprises zero-coupon and fixed-rate Polish government bonds denominated in Polish zlotys and listed on the Treasury BondSpot Poland market.

As of 17 January, the index contained 15 bonds and exhibited a yield to maturity of 3.69% with an effective duration of 3.96 years.

Polish government bonds are currently rated A- which is considered at the lower end of upper-medium grade, bordering on lower-medium grade. All three major credit rating agencies currently have a stable outlook for Polish Treasuries.

The fund comes with a management fee of 0.10% and an expected total expense ratio of 0.50%.

Robert Sochacki, Board Member of Beta Securities Poland and Member of the Supervisory Board of Agiofunds, commented: “The newly listed Beta ETF TBSP is our ninth ETF, the first representative of a new asset class, and above all a key element for building efficient investment portfolios. Thanks to TBSP’s low correlation with the stock market, investors can construct portfolios that match their expected returns and risk appetite. Treasury bonds offer not only low risk but also attractive returns which can largely exceed inflation over a horizon of several years.”

Izabela Olszewska, Member of the GPW Management Board, added: “The Beta ETF on the TBSP index is the first instrument of its kind offered by GPW which gives exposure to the bond market. We believe that the instrument will attract the interest of investors.”

Radosław Olszewski, President of DM BOŚ, offering agent and market maker for the ETF, said: “I am impressed by the ongoing expansion of the range of ETFs available to domestic investors with new underlying asset classes. The newly listed ETF on the TBSP index is the first ETF on the Warsaw trading floor replicating the bond market. It may be an interesting alternative for investors and allow for better diversification of their portfolios. I am also glad that DM BOŚ can be an active participant in the development of the ETF market in Poland.”

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