Singapore Exchange (SGX) announced today the listing of an Indonesia Sovereign Bond ETF by Deutsche Asset & Wealth Management (DeAWM). Called the DB Xtrackers II Market iBoxx ABF Indonesia Government UCITs ETF, its listing brings the total number of ETFs on SGX to 89, of which 12 are fixed income ETFs.
The ETF tracks the Markit iBoxx ABF Indonesia Government Index which covers sovereign Indonesia debt issued in domestic currency by the Indonesian central government. This is the first Indonesian sovereign debt ETF listed in Asia, thus adding to the diverse suite of fixed income ETFs that SGX currently has.
Jenny Chiam, Head of Securities at SGX, said: “We welcome this new ETF listing by Deutsche Asset & Wealth Management. This is the first time investors can invest in an Indonesian sovereign bond efficiently via an ETF. This ETF also gives investors an additional opportunity to access the growing Indonesian economy.”
Marco Montanari, Head of Passive Asset Management, Asia Pacific, Deutsche Asset & Wealth Management, said: “Being the 4th most populated country in the world and with a yield over 6% and a debt to GDP ratio below 30%, Indonesia is indeed an appealing market to both regional and global investors. To capture such investment potential, investors should consider the newly listed unique Indonesia Sovereign Bond ETF offered by DeAWM. This ETF is an extension of our product offerings following the successful listing of the Indonesia Equity ETF which has raised over US$100 million over the past two years.”
SGX has a comprehensive suite of ETFs covering single country and regional equity indices as well as commodities and fixed income. The new ETF adds to SGX’s existing range of Indonesian equity ETFs and Futures.