London, 28 October 2021 - Legal & General Investment Management (LGIM) has today launched the L&G India INR Government Bond UCITS ETF (the “ETF”).
28 Oct 2021
The ETF is the first in Europe to provide dedicated exposure to India government bonds, a convenient and transparent way for UK and European investors to access the country’s growing local-currency government bond market.
The Fund is listed on the London Stock Exchange (LSE), Deutsche Börse and Borsa Italiana. It will seek to track the performance of the JP Morgan India Government Fully Accessible Route (FAR) Bonds Index. The ETF can provide investors with:
• access to a sovereign bond market that has expanded rapidly in recent years and is expected to continue growing due to positive structural trends
• exposure to an investment-grade market with a significantly higher yield than developed market treasuries, and a historically attractive risk/return profile
• potential diversification benefits from other fixed-income markets given the historically low correlation between local-currency Indian bonds and other emerging and developed-market debt, and
• a liquid, transparent and convenient way to allocate to a bond market and currency that have historically been difficult for international investors to trade.
Lee Collins, Head of Index Fixed Income, Legal & General Investment Management (LGIM): "We are delighted to launch the L&G India INR Government Bond UCITS ETF, offering investors exposure to one of the world’s largest government bond markets. 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. We think it is now an appropriate time to offer this product to investors."
Steven de Vries, Head of Wholesale and Retail, EMEA, Legal & General Investment Management (LGIM): “By introducing Europe’s first local currency India Bond ETF, LGIM continues to bring innovative and meaningful solutions to customers, which have been at the heart of the firm’s strong growth in the ETF space over the last three years. This product complements our successful fixed income ETF range. It provides investors with the opportunity to enter a growing market early and offers an exciting option in their search for strong yields."
"Thanks to its UCITS structure, the Fund will give investors easy access to a complex and a highly regulated market, without having to deal with a complex currency or hire a tax adviser or local broker. It can also provide meaningful liquidity, even in times of market stress, by trading in both the primary and secondary markets.”
Legal & General Investment Management
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.16 trillion1 ($1.47tn, €1.35tn, CHF 1.31tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1 Data as at 30 June 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong.
Assets under management include securities and derivatives positions
*as at HY 2023