Beijing-based Asian Infrastructure Investment Bank selected Aberdeen Standard Investments to manage the $500 million AIIB Asia ESG Enhanced Credit Managed Portfolio that the AIIB board approved last December.
That appointment is part of a broader strategic partnership between AIIB and Aberdeen Standard to "develop debt capital markets for infrastructure, drive responsible investing in fixed income and build a sustainable environmental, social and governance ecosystem in emerging markets in Asia," according to a joint news release Friday.
The two will also cooperate on a "sustainable capital markets initiative," noted Aberdeen Standard spokeswoman Alvena So. The news release said the initiative will look to support ESG investing strategies by acting "as an engine of change to improve ESG standards and build capacity around responsible investing with various market participants," including corporate bond issuers, rating agencies and index providers to improve disclosure and expand ESG rating coverage in Emerging Asia.
Aberdeen Standard's Singapore-based fixed-income team will manage the portfolio. AIIB spokesman Ricardo Dunn said the portfolio will focus on "Asian infrastructure-related bonds ... with ESG factors fully integrated in the investment process and portfolio management."
