Home / Money / Personal Finance /  Nippon Life India AMC, DWS partner to launch European-listed Indian govt bond ETF

Nippon Life India AMC, DWS partner to launch European-listed Indian govt bond ETF

Nippon Life India, DWS partner to launch European-listed Indian govt bond ETF. (Photo: iStock)Premium
Nippon Life India, DWS partner to launch European-listed Indian govt bond ETF. (Photo: iStock)

As of August 2022, the market size for securities issued by the Indian government was over $1 trillion, placing the country between corresponding markets in Canada and Spain. In the emerging markets local currency space, India is only second to China’s treasury market

NEW DELHI: DWS Group and Nippon Life India Asset Management (Singapore) Pte. Ltd., a wholly owned subsidiary of Nippon Life India Asset Management Ltd., have collaborated to provide portfolio management and investment advisory services to the European-listed Indian Government Bond ETF.

As of August 2022, the market size for securities issued by the Indian government was over $1 trillion, placing the country between corresponding markets in Canada and Spain. In the emerging markets local currency space, India is only second to China’s treasury market.

However, Indian rupee-denominated government bonds due to limited liquidity and accessibility are currently not included in the flagship indices such as Bloomberg Global-Aggregate or J.P. Morgan Government Bond – Emerging Markets Global Diversified.

“The relevant index (J.P. Morgan India Government Fully Accessible Route (FAR) Bond index) aims to track the performance of fixed-rate Indian rupee-denominated Indian government bonds that have been made eligible for investment to non-residents under the Fully Accessible Route (FAR). The FAR is a separate channel established by the Reserve Bank of India, in consultation with the Government of India, through which eligible investors can invest in specified Government securities without any investment ceilings. The instruments comprise FAR-eligible fixed-rate and zero-coupon bonds," Nippon Life India AMC said in its official statement.

“We are delighted to provide access to India’s growth story to DWS’ investor base through this association. Long-term track record and deep understanding of the Indian capital market and ETF segment can be leveraged further through this opportunity. I believe such collaboration with DWS can go a long way in attracting global allocations into India", said Sundeep Sikka, Executive Director and CEO, Nippon Life India Asset Management Limited.

Michael Mohr, Head of Product Specialists Passive at Germany-based DWS said, “DWS is continuously developing its range of ETFs in order to meet the ever-evolving needs of investors. Through this collaboration, we give our clients access to the attractive Indian bond market. Nippon Life India Asset Management brings in its deep knowledge of the Indian Fixed-Income market."

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