UPDATE: ZyFin Breaks Into Europe With World’s First Indian Bond ETF

Indian macro-analystics firm ZyFin plans to launch exchange traded funds (ETFs) in Europe, including the world’s first Indian fixed income ETF, expanding ways that investors can access higher yields and emerging markets.

The LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF will list on 19 November and will offer investors access to a basket of Indian public sector corporate bonds, representing a play on infrastructure with companies like the Indian Railways, Power Finance Corporation and Rural Electrification Corporation of India. According to a statement from the provider, although 51 percent of the companies issuing the bonds are state-owned, the ETF has a higher yield than an Indian sovereign bond at around 7 percent. Annual fees for the new fund amount to 0.79 percent.

ZyFin, which was founded in 2011, will domicile the ETF in Ireland and has announced to grow its range, including smart beta ETFs, in Europe. It will work with London-based wealth manager Sun Global Investments to launch and distribute this fund.

Sanjay Sachdev, executive chairman and co-founder, said in a statement that the firm plans to launch further fixed income and equity ETFs to offer “easy access” to global investors who want to tap into India.

"This is the first time global investors will have access to AAA rated government owned Indian companies through an exchange traded fund and with the Indian government keen to stimulate outside investment, this is a very exciting time to be investing in the country," he said.

Mihir Kapadia, CEO at Sun Global Investments, said: "With India expected to overtake China next year as the world’s fastest growing economy, we are confident that new investments innovations such as ours will help reinforce its growth trajectory."

Global investors have limited options to access India via European ETFs currently – indexes like MSCI India and the S&P CNX Nifty are tracked by providers including db X-trackers, Lyxor, Amundi and BNP Paribas.