Nippon AMC, DWS collaborate to launch European-listed Indian Government Bond ETF

13 Sep 2022 , 11:11 AM

Nippon Life India Asset Management Limited’s wholly-owned subsidiary Nippon Life India Asset Management (Singapore) Pte. Ltd., and DWS Group partnered to provide portfolio management and investment advisory services to European-listed Indian Government Bond ETF.

As of August 2022, the market for securities issued by the Indian government was worth more than $1 trillion, putting the nation in the same league as analogous markets in Canada and Spain. India’s treasury market is only second to China’s in the emerging market local currency arena.

However, due to restricted liquidity and accessibility, Indian rupee-denominated government bonds issued by the Indian government are not yet included in major indexes such as Bloomberg Global-Aggregate or J.P. Morgan Government Bond Emerging Markets Diversified Global.

The applicable index (J.P. Morgan India Government Fully Accessible Route (FAR) Bond index) seeks to measure the performance of fixed-rate Indian rupee-denominated Indian government bonds made available to non-residents through the Fully Accessible Route (FAR), stated Nippon Life India AMC in media reports.

The FAR is a distinct route developed by the Reserve Bank of India in conjunction with the Government of India through which eligible investors can invest in specific Government securities without regard for investment limits. FAR-eligible fixed-rate and zero-coupon bonds are among those securities.

At around 11.21 AM, Nippon Life India AMC was trading at Rs297.90, up by 0.084% against previous close of Rs297.65 on NSE. It hit intraday high and low of Rs300.35 and Rs297.05 respectively.

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