French asset manager Amundi has launched an emerging market equity fund that invests in companies benefitting from the Belt and Road Initiative (BRI).

The fund seeks out investment opportunities in the markets benefiting from the development of new trade routes across Asia, Europe, Middle East and Africa.

Commenting on the launch, Yerlan Syzdykov, global head of emerging markets at Amundi, says that the fund aims to invest 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,” he says. “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 Road.”

Amundi Funds New Silk Road invests mainly in a broad range of equities of companies that are based in, or do most of their business in, emerging countries and directly or indirectly benefit from the BRI.

The fund may invest in and have direct access to China A shares via Stock Connect, and may invest up to 30% of its assets in China A and B shares (combined). The investment strategy recommends a minimum holding term of 5 years.

Amundi is Europe’s largest asset manager with 1.487 trillion euros (US$1.65 trillion) in assets under management.