Invesco launches ‘Belt and Road’ fixed income fund

Invesco has launched what it claims is the first fixed income fund for investors to buy into investment opportunities driven by China’s ‘Belt and Road’ (B&R) initiative.

The Invesco Belt and Road Debt Fund will seek long-term returns by integrating a thematic approach and aims to benefit from capital gain potential across regional bond markets fuelled by the strategy – set up in 2013 to promote land and sea connectivity in Asia, Europe, the Middle East and Africa. 

The fund will invest primarily in USD sovereign bonds, investment grade and high-yield corporate bonds from select issuers that could directly or indirectly benefit from increasing capital and trade flows, catalysed by the B&R initiative.

It can invest up to 10% in equities from the B&R initiative region. Strong risk mitigation is enforced to cap forward-looking volatility most of the time, with the ability to tactically raise cash up to 30% in anticipation of rising market risks.

Sergio Trezzi, head of retail distribution for Emea (ex-UK) and Latin America, said: “Demand for thematic investment is growing in the European markets, in particular in the wealth management channel, considering the longer-term investment opportunities coming from macro, social and cultural trends.”

©2018 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST