Scottish asset manager Aberdeen Standard Investments and the international investment arm of state-owned China Construction Bank Corporation have launched a bond fund based on the Belt and Road Initiative, a mammoth China-led infrastructure plan spanning three continents.
The Aberdeen Standard SICAV I – ASI – CCBI Belt & Road Bond Fund invests in bonds issued by governments and companies that could benefit from the plan, the asset manager says in a statement on November 2.
At least 80% of the fund will be invested in US dollar-denominated emerging-market debt, including frontier market bonds. The investment adviser is CCB International Asset Management, China Construction Bank’s investment arm.
The Belt and Road initiative aims to connect Asia, Europe, the Middle East and Africa through a vast logistics and transport network involving 65 countries. It was unveiled by Chinese President Xi Jinping in 2013.
“The investment universe of Belt and Road related countries and sectors is US$3.8 trillion across sovereign and corporate bonds, presenting ample opportunities for investors seeking to diversify from low-yielding developed market bonds,” Adam McCabe, head of fixed income for Asia and Australia at Aberdeen Standard Investments, says in the statement.
Edinburgh-based Aberdeen Standard Investments had $562.9 billion of total assets as of June 2020.
Beijing-based China Construction Bank had 25.4 trillion RMB ($3.79 trillion) of total assets as of December 2019. Its investment arm doesn’t publish separate asset figures.
