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Jefferies Allocates 25% of Sovereign Portfolio to Indian Bonds
Jefferies is an investment firm that shared how it divides a group of government bonds from different countries.
One-quarter of the group is invested in Indian bonds that last 15 years and offer a 7.38% yield.
The rest is invested in bonds from Brazil, China and Singapore.
Together, the bonds have an average yield of 6.97%.
Jefferies said emerging-market bonds have done better than bonds from the G7 countries since March 2020.
Its own portfolio also gained value over that time, while the G7 bond index lost value.
The report did not say that the Indian allocation was a forecast of future returns.
Jefferies’ global sovereign portfolio assigns 25% to Indian 15-year government bonds yielding 7.38%.
The portfolio also holds bonds from China, Singapore and Brazil, with allocations of 20%, 25% and 30%, respectively.
The portfolio’s average yield is 6.97%; Brazil’s 10-year bonds yield 14.10%, while China’s five-year bonds yield 1.40%.
Jefferies said emerging-market local-currency government bonds outperformed the G7 bond index by 59% since March 2020.
Since launch on March 26, 2020, the portfolio rose 39.8%, while the G7 government bond index fell 19.4%.
- Who
- Jefferies.
- What
- It allocated 25% of its global sovereign bond portfolio to Indian 15-year government bonds yielding 7.38%.
- Where
- The portfolio holds local-currency government bonds from India, China, Singapore and Brazil.
- When
- The report described the portfolio and its performance; it said the portfolio launched on March 26, 2020.
- Why
- The report highlighted emerging-market bond performance relative to G7 bonds, but did not give a specific reason for the 25% India allocation.
Emerging-market bonds
G7 government bonds
Relative performance since March 2020
Emerging-market bonds
Jefferies said the Bloomberg Emerging Markets local-currency government bond index outperformed the Bloomberg G7 government bond index by 59%.
G7 government bonds
The G7 government bond index underperformed the emerging-market index over that period and fell 19.4% since the Jefferies portfolio launched.
Jefferies portfolio performance
Emerging-market bonds
Jefferies’ portfolio gained 2.9% in the September quarter and 4.8% year-to-date.
G7 government bonds
The G7 government bond index declined 2.7% in the September quarter and 4.2% year-to-date.
Key facts
- India allocation
- 25% in 15-year Indian rupee government bonds
- India bond yield
- 7.38%
- Portfolio average yield
- 6.97%
- Other allocations
- Brazil 30%; Singapore 25%; China 20%
- September-quarter return
- Portfolio gained 2.9% in US-dollar total-return terms; the G7 government bond index fell 2.7%
- Year-to-date return
- Portfolio rose 4.8%; the G7 government bond index fell 4.2%
- Return since launch
- Since March 26, 2020, the portfolio rose 39.8%; the G7 index fell 19.4%
Sources
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