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UTI Investments Collaborates with FTSE Russell to Revamp Sovereign Bond ETF

In December 2025, UTI Investments announced a significant change to its Sovereign Bond ETF, identifiable under the Bloomberg Ticker UIGB NA Equity. The firm has shifted its benchmark index from the Nifty India Government Fully Accessible Route (FAR) Select 7 Bonds (USD) to the FTSE Indian Government Bond FAR (Bloomberg Ticker CFIIFARU). This strategic move is a result of a collaboration with FTSE Russell, a global index provider aimed at improving the visibility of Indian sovereign bonds in international markets.

The decision to adopt the FTSE index underscores UTI Investments' commitment to align with globally recognized benchmarks, providing investors with enhanced access to India's sovereign bonds. This transition not only maintains investor access but also promises to reflect the performance of the FTSE Indian Government Bond FAR, a transparent and rules-based index extensively monitored by global investors. The FTSE index encompasses a wider range of maturities and yields, contributing to a more balanced portfolio while enhancing stability and reducing concentration risk across different interest rate cycles.

The Growing Importance of Indian Sovereign Bonds

Indian government bonds are becoming increasingly influential in the emerging markets landscape. In 2024/2025, they were included in major emerging market government bond indices, starting with JPMorgan and Bloomberg, culminating in an inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI) by September 2025. With a projected weighting of 9.35% in the EMGBI, Indian bonds are set to play an integral role in global emerging market debt portfolios, reflecting the growing accessibility and maturity of the Indian bond market for international investors.

There are several compelling reasons why investors are gravitating toward Indian sovereign bonds. They typically offer higher yields compared to many developed and emerging markets, enhancing their appeal. Additionally, these bonds provide diversification benefits with a relatively low correlation to U.S. Treasury securities and other global fixed-income markets. India has strong currency reserves exceeding $650 billion, equipping it to absorb external shocks effectively. Notably, a recent upgrade by S&P to BBB from a lower rating is the first since 2007, reinforcing confidence in India's capacity to sustain growth, manage inflation, and maintain fiscal discipline, thus bolstering international investor interest.

Insights from FTSE Russell

Scott Harman, head of fixed income, currencies, and commodities at FTSE Russell, expressed enthusiasm about this collaboration, emphasizing that the move to adopt the FTSE Indian Government Bond FAR for the Sovereign Bond ETF highlights the rising global interest in Indian fixed-income markets. Harman reiterated their dedication to providing transparent, rules-based indices that allow investors to seize opportunities in emerging markets. As Indian sovereign bonds gain prominence in global indices, he looks forward to strengthening partnerships that facilitate greater investor engagement and capital flows into India.

About UTI Investments

UTI Investments is the international arm of UTI Asset Management Company (UTI AMC), India's oldest asset manager. Based in Singapore, UTI Investments empowers global investors to access Indian equity and fixed income markets through a suite of innovative and transparent investment solutions.

In conclusion, the collaboration between UTI Investments and FTSE Russell is a landmark development that is expected to enhance the profile of Indian sovereign bonds on the international stage. By aligning with a global benchmark, investors can expect a more reliable and enriched investment experience, reflecting the evolving dynamics of India's bond market.