Legal and General Investment Management (LGIM) has launched what it claims is Europe’s first local currency ETF based on Indian government bonds.
The L&G India INR Government Bond Ucits ETF tracks the performance of the JP Morgan India Government Fully Accessible Route Bonds index and will be listed on the London Stock Exchanges, Deutsche Boerse and Borsa Italiana.
According to the firm, the ETF launch has been inspired by greater access to the country’s sovereign bond market which is expected to continue expanding due to positive structural trends.
In addition, the market has produced a significantly higher yield than developed market treasuries in recent years and has a historically attractive risk/return profile.
“Clear progress has been made by the Indian authorities to allow easier access for foreign investors and the country has been on a path to be included across major fixed income indices,” said Lee Collins, head of fixed income at LGIM. “We think it is now an appropriate time to offer this product to investors.”
The ETF is registered for distribution in the UK, Germany, Austria, Italy, Ireland, Netherlands, Norway, Denmark, Sweden, Finland, France, Spain and Luxembourg.
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