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

NEW DELHI: DWS Group and Nippon Life India Asset Management (Singapore) Pte. Ltd., an entirely owned subsidiary of Nippon Life India Asset Management Ltd., have collaborated to offer portfolio administration and funding advisory companies to the European-listed Indian Government Bond ETF.

As of August 2022, the market dimension for securities issued by the Indian authorities was over $1 trillion, inserting the nation between corresponding markets in Canada and Spain. In the rising markets native forex house, India is simply second to China’s treasury market.

However, Indian rupee-denominated authorities bonds on account of restricted liquidity and accessibility are at the moment not included within the flagship indices akin to Bloomberg Global-Aggregate or J.P. Morgan Government Bond – Emerging Markets Global Diversified.

“The related index (J.P. Morgan India Government Fully Accessible Route (FAR) Bond index) goals to trace the efficiency of fixed-rate Indian rupee-denominated Indian authorities bonds which were made eligible for funding to non-residents beneath the Fully Accessible Route (FAR). The FAR is a separate channel established by the Reserve Bank of India, in session with the Government of India, by way of which eligible traders can put money into specified Government securities with none funding ceilings. The devices 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”, stated Sundeep Sikka, Executive Director and CEO, Nippon Life India Asset Management Limited.

Michael Mohr, Head of Product Specialists Passive at Germany-based DWS stated, “DWS is repeatedly growing its vary of ETFs with a view to meet the ever-evolving wants of traders. Through this collaboration, we give our shoppers entry to the enticing Indian bond market. Nippon Life India Asset Management brings in its deep information of the Indian Fixed-Income market.”

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