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Amundi EM fund looks at China and beyond

Belt_and_RoadAmundi has launched an emerging markets-themed fund investing in companies that benefit from the ‘New Silk Road’ trading connection with China.

Amundi Funds New Silk Road looks for opportunities in markets benefiting from the development of new trade routes across Asia, Europe, Middle East and Africa.

Amundi cites China’s proposed Belt and Road Initiative (BRI) in 2013 as a driver for the fund. The initiative “acts as a catalyst for new trade routes and growth, stimulating economic growth and capital formation beyond China, the firm said.

A New Silk Road “eco-system” includes more than 65 countries, with €1 trillion of planned investments in 1700 infrastructure projects. A high-conviction portfolio of 60-90 names is sought.

Yerlan Syzdykov, global head of emerging markets at Amundi, said the fund aims at investing in the areas associated with the BRI project, rather than investing directly where the BRI invests.

“We have observed that many BRI projects with potential primary effects may not offer the most attractive investment opportunity. Hence, we are willing to look beyond China and infrastructure to seek out investment opportunities that we believe will benefit from the expected expansion in trade and associated economic growth along the new Silk Roads.”

A New Silk Road cross-asset solutions strategy that Amundi launched in April this year has attracted more than €459 million, the firm said.

Nicholas McConway, head of thematic and concentrated strategies, leads the New Silk Road strategy team and Giampaolo Isolani and Deirdre Maher are co-managers.

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