Vontobel Belt and Road Index, advised by CCBIAM
The Vontobel Belt and Road Index, advised by CCBIAM, is an index designed and calculated by Bank Vontobel AG as Index Calculation Agent. The Index Sponsor CCBIAM is responsible for the index composition, the weightings of the constituents, the investment strategy, and the stock selection. The index reflects the price performance of companies that stand to profit to a considerable degree from the realization of the Belt and Road Initiative. Its constituents are selected by CCBIAM using a partly systematic and partly discretionary process based on a three-dimensional top-down approach (country/sector/stock). Taking account of both qualitative variables (Geopolitical risk, Legal risk, Transaction risk) and quantitative variables (Currency risk, Country risk, Trading market value), CCBIAM picked eight BRI countries to constitute the equity universe: China, India, Korea, South Africa, Indonesia, Singapore, Malaysia and Thailand.
Five sectors were then chosen that have an especially high chance of profiting from the BRI: communication, engineering, diversified and conglomerate, industrial manufacturing, and technology and public utilities.
CCBIAM completes the selection process by deciding at its own discretion which five stocks in each sector it admits to the index, basing its choices on its own financial expertise, research capabilities, know-how, and market experience.