UTI Investments Teams Up with FTSE Russell to Transform Sovereign Bond ETF Benchmark

In a groundbreaking development, UTI Investments has partnered with FTSE Russell to transition the benchmark for its Sovereign Bond ETF, recognized by its Bloomberg ticker UIGB NA Equity. The ETF has shifted from the Nifty India Government Fully Accessible Route (FAR) Select 7 Bonds Index to the FTSE Indian Government Bond FAR Index, also known by its Bloomberg ticker CFIIFARU. This transition aims to improve the visibility of the ETF and align it with globally acknowledged benchmarks.

The newly adopted FTSE Indian Government Bond FAR Index is structured as a transparent, rules-based index that is widely followed by international investors. This change ensures that the ETF continues to provide access to Indian government bonds while accurately reflecting the performance of the new index. The FTSE index boasts a broader yield-curve exposure, encompassing both short- and long-dated maturities. Such diversification optimally balances a portfolio, enhancing stability through various interest rate cycles and minimizing concentration risks. Moreover, it aims to more realistically present the dynamics of the Indian sovereign bond market.

The Significance of Indian Government Bonds

The growing inclusion of Indian government bonds in major Emerging Markets Government Bond Indexes, such as JPMorgan and Bloomberg in 2024, and the FTSE Emerging Markets Government Bond Index (EMGBI) since September 2025, signals a noteworthy advancement in India’s bond market accessibility for global investors. With Indian bonds expected to have a weighting of around 9.35% in the EMGBI, they are positioned to significantly permeate international emerging market debt portfolios.

What makes Indian government bonds particularly appealing in today's market is their higher yield compared to several rivals in both developed and emerging markets. Additionally, their low correlation with US Treasuries adds a layer of diversification that is attractive to investors. With foreign exchange reserves exceeding USD 650 billion, India is particularly well-equipped to handle external financial shocks. Furthermore, the recent upgrade of India’s sovereign credit rating to BBB, the first since 2007, reassures global investors of India’s economic stability and fiscal discipline, making its bonds an even more compelling proposition.

Scott Harman, who heads the Fixed Income, Currencies and Commodities (FICC) division at FTSE Russell, remarked on the partnership, stating, "We are pleased to collaborate with UTI Investment as it adopts the FTSE Indian Government Bond FAR Index for its Sovereign Bond ETF. This reflects the growing global interest in India's fixed income markets and underscores our commitment to providing transparent, rules-based benchmarks that enable investor access to emerging market opportunities. As Indian government bonds gain prominence in global indices, we look forward to strengthening our partnership to foster investor engagement and capital flows into India."

About UTI Investments

UTI Investments serves as the global arm of UTI Asset Management Company (UTI AMC), which is recognized as India’s oldest asset manager. Headquartered in Singapore, UTI Investments offers a variety of innovative and transparent investment solutions that grant global investors access to both Indian equity and fixed income markets.

Conclusion

The shift to the FTSE Indian Government Bond FAR Index reflects UTI Investments’ ongoing commitment to enhancing investor experience and navigating the evolving landscape of global finance. With noteworthy developments ahead, both UTI Investments and FTSE Russell are set on a path toward greater engagement and growth in the Indian bond market.

Disclaimer: This document serves informational purposes only and is not a solicitation for any securities. Investors are advised to evaluate their investment goals and consult with their advisors prior to any decisions.