Gilbert Gnany, Chief Strategy Officer of MCB Group, is also the Chairman of the MCB India Sovereign Exchange-Traded Fund. Launched last year, the world’s first ETF, focused on India’s sovereign bonds, has performed remarkably well. Its prospects seem as bright with India set to further entrench its position as an upcoming economic superpower.
In June 2016, true to its innovative and pioneering culture, MCB Group – through its non-banking financial subsidiary specialising in the provision of investment related services, namely MCB Capital Markets Ltd – launched the MCBIndia Sovereign Bond Exchange-Traded Fund, in partnership with ZyFin Holdings Pte. Limited (ZyFin). In fact, the Group has set out to bring something truly unique to the ETF market, which is already composed of about 5,000 ETFs worldwide.
The Economic Times last year designated the MCB India Sovereign Bond ETF as “the world’s first Exchange Traded Fund focused on India’s sovereign bonds”. Fundamentally, the MCB India Sovereign Bond ETF aims to deliver dedicated access to international investors to the Indian sovereign bonds market. Its underlying objective is to provide investors with regular short-term returns through the payment of half-yearly dividends and longer-term capital appreciation by replicating the ZyFin India Sovereign Bond Liquid Index which tracks the performance of the most liquid, fixed-rate and INR-denominated bond issued by the Government of India.