Malaysia’s UOB Asset Launches India Bond Fund Before Inclusion
The United Bharat Fixed Income Fund feeds into the HSBC GIF India Fixed Income fund, according to its fact sheet.
(Bloomberg) -- UOB Asset Management Malaysia Bhd. launched an India-focused bond fund this week, giving Malaysian investors an opportunity to snap up rupee-denominated debt ahead of the South Asian country’s inclusion to JPMorgan Chase & Co.’s emerging market index.
The United Bharat Fixed Income Fund feeds into a target fund, the HSBC GIF India Fixed Income fund, according to the fact sheet shared with Bloomberg. It has a passive strategy, and investment decisions will be made by the HSBC fund, the documents showed. It will be UOB Asset Management Malaysia’s first India-focused bond fund, CEO Lim Suet Ling said.
Foreign investors have funneled nearly $10 billion into India’s index-eligible bonds in the run-up to the inclusion. Investors like Abrdn and Vontobel have been investing in the local currency bonds as low correlation with global markets, one of the world’s fastest growth rates and a stable currency make Indian assets an attractive bet.
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