- By Financial Observer, 21/08/2017
Digital wealth management provider Quantifeed has introduced a new model portfolio which is aimed at capturing growth opportunities of the China’s Belt and Road Initiative (BRI).
The portfolio consists of a selection of Chinese companies that will directly benefit from the government-led initiative to construct ports, warehouses and rail networks to improve China’s trade routes.
The companies included businesses in the areas of infrastructure, transportation infrastructure construction, and renewable energy development and distribution.
“In addition to their direct involvement in the BRI, the rules of the portfolio require its constituents to derive a significant part of their revenue from countries other than China, have a positive return on equity, a market capitalisation [of] over 500 million Chinese yuan and daily liquidity of 50 million [yuan],” the company said.
Quantifeed senior quantitative strategist Gaudi Schneider said the plan provided access to Chinese companies that were at the core of the US$900 billion initiative.
“Our systematic stock selection process identifies the companies that will benefit from the Belt and Road initiative and provide investors with exposure to the likely growth associated with this theme,” Schneider said.
Quantifeed senior executive for strategic partnerships Graeme Brant said the creation of the portfolio was in response to client feedback.
“In this case specifically, we are addressing our clients’ request to make available a portfolio designed to capture the growth opportunity of what’s possibly the biggest macroeconomic story of the century,” Brant said.