ZyFin poised to list world’s first Indian fixed income ETF

Nov 4th, 2015 | By | Category: Fixed Income

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ZyFin, a Singapore-headquartered asset manager with advisory operations based in India, has announced plans to launch a suite of ETFs including the world’s first Indian fixed income ETF, the LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF.

ZyFin poised to list worlds first Indian fixed income ETF

Zyfin’s ETF provides investors access to fixed income securities issued by Indian State Owned Enterprises.

The objective of the fund is to provide exposure to high quality securities issued by Indian Sovereign Owned Enterprises (SOEs). SOEs are Indian companies or enterprises which are majority owned (at least 51%) by the Central Government of India.

Sanjay Sachdev, Executive Chairman and Co-Founder commented: “Backed by our expertise in macro-analytics research, we are very excited about launching our first ETF in Europe.  Over the course of the next year, we plan to launch a range of fixed income and equity ETFs to offer easy access for global investors that want exposure to capital markets in India.”

According to ZyFin, the fixed income fund will provide an attractive option for global fixed income investors to address their thirst for higher yields in an otherwise challenging market where fixed income investors are starved of attractive yield-generating options.

Nina Shapiro, Senior Advisor at ZyFin added: “With high GDP growth, reducing inflation and budget deficits and a progressive government focused on economic development, the investment case for India is compelling and this is a fantastic time for ZyFin to be at the forefront of bringing India closer to global investors.”

The fund tracks the ZyFin India Sovereign Owned Enterprise Bond Index which draws its constituents from the highest credit rated SOE issues in its eligible universe. Eligible bonds must be rated AAA or equivalent and components are selected based on aggregate traded value in last calendar month. The index will have six constituents, each receiving an equal weight, with no more than one security from a single issuer eligible for the index at any one time.

The firm has received approval from the Central Bank of Ireland to launch a UCITS Dublin domiciled fund structure in Europe and expects to list its funds on the Frankfurt and London Stock Exchanges.

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