FTSE World Government Bond Index (WGBI) Series
The FTSE World Government Bond Index (WGBI) is the recognized leading benchmark for global treasury exposure followed by major fund managers and large asset owners around the world. The FTSE WGBI measures the performance of fixed-rate, local currency, investment-grade sovereign bonds from over 20 countries, denominated in a variety of currencies, and has more than 30 years of history available. The WGBI is a broad benchmark providing coverage of the global sovereign fixed income market. Modular and comprehensive in design, sub-indices are available by country, currency, maturity, and rating.
The FTSE WGBI provides the foundation for innovative product variations for alternative investment strategies, including sustainable investment and smart beta overlays, detailed below.
FTSE World Government Bond Index (FTSE WGBI)
- A broad index providing exposure to the global sovereign fixed income market, the index measures the performance of fixed-rate, local currency, investment-grade sovereign bonds. It comprises sovereign debt from over 20 countries, denominated in a variety of currencies.
FTSE World Government 0-1 Year Index
- The FTSE World Government 0-1 Year Index provides roll-down and treasury bill coverage, combining the FTSE World Government Bond 0-1 Year Index with the associated treasury bill indices as covered within the FTSE Global Treasury Bill 0-1 Year Index Series. Sub-indices are available by country and term.
FTSE World Government Bond 0-1 Year Index
- The index tracks ‘roll-down’ bonds from the FTSE WGBI (bonds with less than one year remaining until maturity), using a common methodology. A minimum maturity of one month applies.
FTSE World Government Bond 0+ Years Index
- The FTSE World Government Bond 0+ Years Index combines the FTSE WGBI with the FTSE World Government Bond 0-1 Year Index.
- This index incorporates a climate tilting methodology, which adjusts index weights according to each country’s relative climate risk performance, assessed by three ‘pillars’ (physical risk, transition risk and resilience).
FTSE Advanced Climate Risk-Adjusted World Government Bond Index
- This index is constructed with a stronger tilt on the transition risk pillar, thereby offering greater exposure to countries with a stronger alignment to the 2-degree pathways.
- This index provides targeted exposure to the sovereign bonds in the FTSE Climate WGBI, using weights that aim to maximise the index’s yield return (Carry) and its Roll Down return.
- The index series aims to maximize the carry and roll down of the index subject to duration and country weight constraints of the Climate WGBI, supporting global fixed income investors to incorporate climate risk considerations while providing flexibility on optimizing factor variants.
- This index incorporates a tilting methodology that adjusts index weights according to each country’s relative Environmental, Social and Governance (ESG) performance.
FTSE Debt Capacity WGBI
- The index focuses on countries with lower debt issuance relative to their GDP and stronger debt servicing capabilities.
FTSE MPF WGBI
- The FTSE MPF World Government Bond Index is designed to help users meet the regulatory requirements governing investments in debt securities by Hong Kong Mandatory Provident Fund (MPF) schemes.