Tapping into the growth potential of India
India is an investment grade country (S&P BBB-) that offers unprecedented investment opportunities to investors. The country is expected to be the fastest growing economy in the world to 2026 *, with an average GDP growth rate of 7.5% per annum to 2021 according to the International Monetary Fund.
* Research published by the Center for International Development at Harvard University, May 2018
Objective of the MCB India Sovereign Bond ETF
To provide investors with regular short term returns through the payment of half-yearly dividends and longer term capital appreciation by replicating the ZyFin India Sovereign Bond Liquid Index, which tracks the performance of the most liquid, fixed rate, INR-denominated bond issued by the Government of India.
7.74
31 May 2023
7.68
30 May 2023
7.70
31 May 2023
1,529.67
19 May 2023
USD
Documents
MCB India Sovereign Bond Fund Brochure | PDF 1MB MCBISBETF Factsheet | PDF 402KB India Sovereign Bond ETF - Prospectus | PDF 824KB Zyfin India Sovereign Bond Liquid Index | PDF 437KB ISBETF Notice of Dividend | PDF 119KB MCBISBETF Annual Report June 2022 | PDF 4MB MCB INDIA SOVEREIGN BOND ETF Unaudited Financial Statements March 31 2022 | PDF 776KB MCBISBETF Board Charter | PDF 380KB India Sovereign Bond ETF - Constitution | PDF 459KB MCBISBETF Communique Sep 2020 | PDF 614KB MCBISBETF Abridged Unaudited Interim Financial Statements March 31 2023 | PDF 545KBInvestment grade status
India is an investment grade country (BBB- by S&P, Baa2 by Moody’s) and has not been downgraded for over a decade.High GDP growth
According to World Bank data, India is now the third largest economy in the world, the country’s nominal GDP having grown more than 11-fold from 1982 to 2017 to reach US$2.6 trillion. The IMF forecasts that India’s economy will grow by 7.5% annually between 2018 and 2021.India’s sovereign debt market is also the third largest amongst Asian peers and is opening up further to foreign investors.
Favourable demographics
India ranks number 2 in the list of countries by population. Its population is equivalent to 17.74% of the total world population as per United Nation estimates, and growing at a rate of 1.1% per annum. India has a low dependency ratio and a growing young population has increasing access to education and the country’s middle-income class is growing, creating a need for new and better infrastructure, which will partly be financed through the debt market.Attractive yields
Yields on India sovereign bonds remain attractive over the long-term in USD terms with an annualised return of 6.25% per annum achieved on 10-year bonds over the last 17 years (1999-2016) **.** Source: S&P BSE India 10-year Sovereign Bond Index (USD)
- Looking to access the Indian sovereign bond market, thereby diversifying their fixed income portfolio
- Looking for regular returns in USD from coupon income and potential long-term gains from capital appreciation of the underlying bonds
- Having an investment horizon of at least 5 years
The bonds must:
- Have principal and interest denominated in INR
- Be fixed-coupon bonds with semi-annual coupon payment frequency
- Have an outstanding amount in issue of at least INR 50 billion
- Have traded for at least 50% of business days in the month
- Not be special bonds (such as Oil Bonds) issued by Indian Government
- Not be in FII Restriction (Negative Investment) list