Reduced Share
JP Morgan to cut share of India bonds in flagship emerging market index
This story was originally published at 11:13 IST on 16 September 2025
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MUMBAI – JP Morgan will reduce the weightage of India in its flagship emerging-market index. The weightage of India will be reduced to 9% from the current 10% over a period of several months, it said in a client note dated Sept. 12.
The index provider, an arm of Wall Street giant JPMorgan Chase & Co., will also lower the weightage of China, Indonesia, Mexico and Malaysia in the Government Bond Index – Emerging Market suite. The flows from these countries will be diverted towards other nations. Thailand, Poland, South Africa and Brazil will be among the biggest beneficiaries with the rejig in weightage.
JP Morgan was the first major global bond index provider to announce it would include India's fully accessible route bonds, which have no statutory cap for foreign ownership. The index inclusion began in June 2024, phased in over 10 months, with India's bonds reaching a 10% weightage in the index by March.
The index is the main benchmark for developing-nation debt funds, and changes to its composition impact global investment flows, with around $236 billion in passive funds tracking the index. Subsequent to JP Morgan's announcement in 2023, Bloomberg and FTSE Russell have also included India in their flagship local currency emerging market bond indices.
"Investors highlighted the benefits of lowering the diversification threshold to 9%, with a more balanced regional exposure that decreases the concentration risk and enhances the headline index yield," the note read. End
Reported by Srijita Bose
Edited by Avishek Dutta
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