Amundi, European leading asset manager ranking among the top 10 global players[1], and European ETF leader[2], announces the expansion of its emerging markets (EM) fixed income offering, with the launch of the Amundi JP Morgan INR India Government Bond UCITS ETF, at management fees[3] of 0.30%.
The ETF tracks the JP Morgan India Government Fully Accessible Route (FAR) Bonds Index, which covers Indian rupee denominated Indian government bonds that have been made accessible to foreign investors, opening investment routes for international investors to participate in the Indian bond market. This new launch underscores Amundi's commitment to providing investors with robust and accessible investment options with potentially highly attractive yields[4] and diversification[5] benefits.
India’s growth story[6], both at a macro level and in its fixed income market, offers investors a compelling investment case. Moreover, the recent inclusion of Indian government bonds in the JP Morgan GBI-EM Global Series indices is driving increased demand and liquidity in Indian bond markets. This, in turn, should support the case for these securities which can be used as a diversifying[7] brick in a global portfolio allocation.
India's economic momentum and the recent inclusion of its government bonds in key global indices present a unique opportunity for international investors. By launching this ETF on Indian government bonds, we are pleased to enable our clients to access an enhanced portfolio diversification tool at a competitive pricing on the market.
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[1] Source: IPE “Top 500 Asset Managers” published in June 2024, based on assets under management as at 31/12/2023
[2] According to ETFGI data as of December 2023, Amundi ETF is the leading ETF issuer with headquarters in Europe on the European market.
[3] Management fees refer to the management fees and other administrative or operating costs of the fund. For more information about all the costs of investing in the fund, please refer to its Key Information Document (KID). Transaction cost and commissions may occur when trading ETF.
[4] Source: Bloomberg, 28 June 2024, which estimates the yield on the 10-year India government bond at around 7%.
[5] Diversification does not guarantee a profit or protect against a loss.
[6] Source: Moody’s Investor Services as at end-June 2024. India is expected to be the fastest-growing economy among the G20 in 2024.
[7] Diversification does not guarantee a profit or protect against a loss.
