India’s first sovereign green bond indices launched

The National Stock Exchanges (NSE’s) index services subsidiary, NSE Indices, has launched India’s first ever sovereign green bond indices. The new indicesNifty India Sovereign Green Bond Jan 2028 Index and Nifty India Sovereign Green Bond Jan 2033 Index, follow the target maturity date structure.

The Nifty India Sovereign Green Bond Jan 2028 Index has a maturity date of 31 January 2028 and includes Government securities (G-Secs) issued under the category of sovereign green bonds (SGrBs) maturing during the six-month period ending January 2028. The Nifty India Sovereign Green Bond Jan 2033 index, on the other hand, has a maturity date of 31 January 2033 and tracks G-Secs issued under the category of

SGrBs maturing during the 12-month period ending January 2033. The indices seek to capture the performance of Indian sovereign green bonds that finance green infrastructure, said Mukesh Agarwal, CEO, NSE Indices.

‘These indices are expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in form of exchange-traded funds (ETFs), index funds and structured products, which can provide fixed income investors efficient and cost-effective access to the Indian sovereign green bond market while making a positive impact on the society,’ he said.

Both indices have base date of January 27, 2023, and a base value of 1,000. The indices will be reviewed monthly.

UOB Asset Management (Malaysia) has launched the United Closed-End Series - Strategic Recovery Fund (UCSSRF), the first fund of structured products offered by the asset manager in the country.

The UCSSRF seeks to provide income and capital preservation by focusing its investments predominantly on a structured product as its underlying asset – the fund aims at achieving its investment objective by investing its net asset value (NAV) into a structured product comprising a basket of selected stocks. In addition, the NAV is also invested in derivatives, money market instruments, deposits and/or cash.

The strategy offers potential income, but investors could also benefit from short-term capital appreciation by the selection of a basket of stocks and exchange-traded funds (ETFs) listed in major exchanges globally, according to Lim Suet Ling (pictured), chief executive officer, UOB Asset Management (Malaysia).

‘While most investors are seeking low volatility returns, the retail market for structured notes with principal protection has been growing in the past two years. The shift in this investment behaviour is due to a highly volatile market impacted by the pandemic outbreak and ongoing geopolitical tensions,’ she said.