Nippon Life India Asset Management (Singapore) Pte. Ltd (a wholly owned subsidiary of Nippon Life India Asset Management Ltd) on Monday said it is collaborating with DWS to provide portfolio management and investment advisory services to European-listed Indian Government Bond ETFs.
It stated that Indian rupee-denominated government bonds issued by the Government of India are not included in major indices such as Bloomberg Global-Aggregate or JP Morgan Government Bonds – Emerging Markets Global Diversified, for reasons of limited liquidity and access.
“The relevant index (JP Morgan India Government Fully Accessible Route (FAR) Bond Index) aims to track the performance of fixed-rate Indian rupee-denominated Government of India bonds, which are fully accessible to non-residents under the route. Qualified for investment. (FAR),” Nippon Life added.
FAR is a separate channel set up 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 limit. Instruments include FAR-qualified fixed rate and zero-coupon bonds.
“DWS is continuously evolving its range of ETFs to meet the ever-evolving needs of investors. Through this association, we provide our clients with access to the lucrative Indian bond market. Nippon Life India Asset Management Indian brings in his in-depth knowledge of the fixed-income market”, said Michael Mohr, Head of Product Specialist Passive, DWS.
“The long-term track record and deep understanding of the Indian capital markets and ETF segment can be leveraged through this opportunity. Sandeep Sikka, Executive Director and CEO, Nippon Life India Asset Management Limited said, “I believe such collaboration with DWS can go a long way in attracting global allocation to India.
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