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UTI Investments Partners with FTSE Russell

In a noteworthy development in the financial markets, UTI Investments has officially announced a collaboration with FTSE Russell. This partnership will see the investment firm's Sovereign Bond ETF (ticker: UIGB NA Equity) transition its benchmark from the Nifty India Government Fully Accessible Route (FAR) Select 7 Bonds Index to the FTSE Indian Government Bond FAR Index (ticker: CFIIFARU). The decision to make this change is mainly aimed at increasing visibility for the ETF and aligning with globally acknowledged benchmarks.

As part of this transition, UTI Investments aims to offer investors continued access to Indian sovereign bonds while better reflecting the performance of the FTSE Indian Government Bond FAR Index. This index is known for its transparency and rule-based approach, attracting attention from international investors. With this shift, the ETF will have exposure across a broader yield curve, encompassing both short- and long-term maturities. It aims to deliver a balanced and diversified portfolio profile, ultimately improving stability across interest rate cycles and reducing concentration risk. Moreover, this will provide a more accurate representation of the Indian sovereign bond market.

Rising Interest in Indian Bonds

The inclusion of Indian government bonds into major emerging market bond indices has been ongoing. Notably, indices by JPMorgan and Bloomberg began incorporating Indian bonds in 2024/2025, and by September 2025, they were further integrated into the FTSE Emerging Markets Government Bond Index (EMGBI). The inclusion echoes the Indian bond market's evolving landscape and increasing accessibility to international investors. With an anticipated weighting of approximately 9.35% in the EMGBI, Indian bonds are poised to play a significant role in global emerging market portfolios.

One of the core reasons for the growing appetite for Indian government bonds is their relatively high yield compared to numerous other developed and emerging economies. Furthermore, these bonds offer diversification advantages due to their low correlation with US Treasuries and other international bond markets. Backed by substantial foreign currency reserves exceeding $650 billion, India is well-prepared to handle external shocks. The recent credit rating upgrade by S&P to BBB—its first upgrade since 2007—highlights India's capability to maintain growth, manage inflation, and uphold fiscal discipline, all contributing to rising interest among international investors.

Scott Harman, the head of the Fixed Income, Currencies and Commodities (FICC) division at FTSE Russell, shared insights on the collaboration saying, "We are pleased to work with UTI Investments as they adopt the FTSE Indian Government Bond FAR Index for their Sovereign Bond ETF. This reflects the growing global interest in Indian debt markets and underscores our commitment to providing transparent, rule-based benchmarks that offer investors access to opportunities in emerging markets. As Indian government bonds gain significance in global indices, we look forward to deepening our partnership to enhance investor engagement and facilitate capital flows into India."

About UTI Investments

Headquartered in Singapore, UTI Investments serves as the global arm of UTI Asset Management Company (UTI AMC), which happens to be India’s oldest asset manager. The firm provides global investors with access to Indian equity and fixed-income markets through various innovative and transparent investment solutions.

A Note of Caution

It is essential to underscore that this document is provided solely for informational purposes and does not constitute an offer or solicitation to buy or sell securities. Past performance is not indicative of future results. Investors are advised to consider their investment goals and risks and consult with their advisors before making any investment decisions. UTI International is the legal name under which UTI Investments operates. For more important legal information and disclaimers, please visit the official UTI website.

As UTI Investments and FTSE Russell embark on this new journey, market participants and investors alike will be keenly monitoring these developments to capitalize on the evolving investment landscape in India's burgeoning financial markets.