Belt & Road - Changing the economic map of the world
This page should be read in conjunction with the investment risks below.
Looking to invest in the Belt & Road Initiative?
Launched in 2013 by Chinese president Xi Jinping, the “One Belt, One Road Initiative”, better known as the Belt & Road Initiative (BRI), may be best described as an ambitious project to boost trade and stimulate economic growth. As a long-term initiative and significant development strategy to promote the land and sea connectivity along Asia, Europe, Middle East, and Africa, it strives to establish and strengthen economic partnerships and cooperation along these regions.
At Invesco we have been early movers, seeing to capture a wide range of interesting investment themes arising.
Learn more about the latest developments in the Belt & Road Initiative by signing up
Why be part of the Belt & Road Initiative?
INVESTMENT DEMAND
The BRI is one of the largest* global infrastructure projects in the history of economic expansion and the massive capital requirements for building it could lead to various investment opportunities.
THE OPPORTUNITIES
The project has five key themes: improving financial strength; expanding infrastructure networks; increasing energy, commodities, agriculture and raw material production; raising local income and consumption; and modernizing economic corridors.
ATTRACTIVE POTENTIAL
We believe that economic improvement that is triggered by the BRI could benefit both government and corporate bond issuers** along the Belt & Road, as well as investors.
LARGE LONG-TERM GROWTH POTENTIAL FOR THE BRI REGION
China is expected to invest USD 150-200 billion per annum in Belt & Road countries; the USA, the EU, the UK and Japan have each announced billions of USD in investments***.
Why Invesco?
At Invesco, diversity of thought isn’t a buzzword, but an ethos reflected in how we work and how our investment capabilities are structured. For professional investors only.
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Why invest in the Invesco Belt and Road Debt Fund?
Invesco is positioned as a pioneer with the issuance of the only fund available for EMEA (Europe, Middle-East and Africa) clients investing solely in Belt & Road-related bonds (Sources: Morningstar, Invesco, data as at September 2018).
Invesco Belt and Road Debt Fund has seen large inflows of USD 1,102 Mln since its launch in November 2018 (Source: Aladdin, data as at 30 November 2020).
Invesco is strongly committed to fixed income investing. The team’s global breadth and local depth provide a comprehensive network of 178 fixed income experts across the globe (Source: Invesco, data as at 30 September 2020).
Investment Risks
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The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.
Changes in interest rates will result in fluctuations in the value of the fund.
The fund uses derivatives (complex instruments) for investment purposes, which may result in the Fund being significantly leveraged and may result in large fluctuations in the value of the fund.
As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the fund.
Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the Fund.
The fund may invest in a dynamic way across assets/asset classes, which may result in periodic changes in the risk profile, underperformance and/or higher transaction costs.
Sign up to our insights to find out if our Invesco Belt and Road Debt Fund could be right for your portfolio.
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to our insights to find out if our Invesco Belt and Road Debt Fund could be right for your portfolio.
Footnotes
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* Source: WorldBank, Belt and Road Portal (https://www.worldbank.org/en/topic/regional-integration/brief/belt-and-road-initiative)
** A corporate bond is debt issued by a company in order for it to raise capital
*** Sources: Bloomberg, HSBC, JPMorgan, Invesco. Data as at 10 August 201
Important Information
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This marketing material contains information that is for discussion purposes only and is exclusively for investors in Switzerland.
Data as at 30 November 2020 unless otherwise stated.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
This material should not be considered financial advice. Persons interested in acquiring the products should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.
For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. These documents are available from our website www.invesco.eu and are without charge. The Key Investor Documents are available in local language.
This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction.
If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser.
Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland, who acts as representative for the funds distributed in Switzerland. Paying agent for the funds distributed in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. This fund is domiciled in Luxembourg.
EMEA 95/2021