The two asset managers will collaborate on product innovation and investment research, and will launch a new fund focusing on Belt and Road opportunities.
Aberdeen Standard Investments (ASI) has entered a strategic partnership with China Construction Bank International Asset Management (CCBIAM), under which the two will launch a new fund that will invest in bonds issued by governments, government-related bodies and companies that could potentially benefit from the Belt and Road Initiative (BRI).
The fund will be managed by ASI’s Asian Fixed Income team, with support from the firm's wider Emerging Market Debt team. CCBIAM will act as an investment adviser and use its knowledge of the BRI and Chinese bond issuers to provide its insight as an input into ASI’s decision-making process.
At least 80 percent of the fund will be invested in U.S. dollar-denominated emerging market debt, including frontier market bonds, with significant exposure to Asian and China credit, an announcement on Tuesday said.
«Ample Opportunities»
ASI said in the announcement that with the BRI investment universe reaching $3.8 trillion across sovereign and corporate bonds, there are «ample opportunities» for investors seeking to diversify from low-yielding developed market bonds.
«Asian and China credit are offering appealing risk-adjusted returns, valuations look relatively attractive and investors are being paid for the risk they take,» Adam McCabe, ASI head of fixed income –Asia and Australia.
