Aberdeen Standard Investments has announced a partnership with the Asian Infrastructure Investment Bank to enhance adoption of sustainable investing in emerging Asia.
The Scottish investment management group will work with the Asian Infrastructure Investment Bank to launch the Sustainable Capital Markets Initiative, to improve ESG standards and build sustainable investing with corporate bond issuers, ratings agencies and index providers, among others.
Aberdeen Standard has been awarded a contract to manage a $500m fund, entitled the AIIB Asia ESG Enhanced Credit Managed Portfolio. The portfolio will consist of Asian infrastructure related bonds, including green and ‘unlabelled’ issuances.
“We look forward to partnering with Aberdeen Standard Investments to achieve our shared vision of sustainable capital markets in Asia,” said DJ Pandian, vice president and chief investment officer of the Asian Infrastructure Investment Bank.
“We believe that institutional investors are a key part of the solution to finance Asia’s infrastructure investment needs over the coming decades. Integrating ESG standards into capital markets in Emerging Asia will be important to achieving long-term sustainable development goals.”
Aberdeen Standard’s fixed income team in Singapore will manage the portfolio. Bonds will be evaluated and managed in line with the investment principles of the asset manager and the Asian Infrastructure Investment Bank.
“Having been investing in Asia for three decades, Aberdeen Standard Investments shares AIIB’s commitment to deepening the region’s capital markets and building a sustainable ESG ecosystem for investing,” said Douglas Flint, the fund group’s chairman.
“The significant need for more infrastructure investment in Asia offers a real opportunity to embed ESG principles, while countries and communities accrue the long-term social and economic value that comes from the asset class,” he added.