Press releases
LGIM launches Europe’s first local currency India government bond ETF
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.”
Andrew Gates
Senior PR Manager
Legal & General Investment Management
T: +44 (0)20 3124 4363
Notes to editors:
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.29 trillion1. 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.
1Globally, we manage assets of £1.42 trillion or CHF 1.75 trillion as at 31 December 2021 (source: LGIM internal data as at 31 December 2021). The 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.
*at 11 Jan 2023
KEY RISKS
Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.
IMPORTANT LEGAL NOTICE
In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).
LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa ("CONSOB") and is registered with Banca d'Italia (no. 23978.0) with registered office at Piazza della Repubblica 3, 20121 Milan, (Companies' Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority ("BaFin"). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets ("AFM") and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231.Details about the full extent of our relevant authorisations and permissions are available from us upon request. For further information on our products (including the product prospectuses), please visit our website.