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

Nippon Life India Asset Management (Singapore) Pte. Ltd. (wholly owned subsidiary of Nippon Life India Asset Management Limited) on Monday said that through collaborating with DWS, it is providing portfolio management and investment advisory services to the European-listed Indian Government Bond ETF.

Indian rupee-denominated government bonds issued by the Indian government for reasons of limited liquidity and accessibility are not included for the time being in flagship indices such as Bloomberg Global-Aggregate or J.P. Morgan Government Bond – Emerging Markets Global Diversified, it said.

“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),” Nippon Life added.

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.

“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”, said Michael Mohr, Head of Product Specialists Passive at DWS.

“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 at Nippon Life India Asset Management Limited.

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