BNP Paribas Asset Management (‘BNPP AM’) announces today the listing of a new global equity exchange-traded funds (‘ETFs’), expanding its current SRI PAB range which totals more than EUR 6.5bn of assets under management (AUM)[1].
BNP Paribas Easy MSCI ACWI SRI S-Series PAB 5% Capped UCITS ETF is a sub-fund of the BNP Paribas Easy Irish ICAV and began trading on 21 May on Euronext Paris, Borsa Italiana and SIX Swiss Exchange while listing on Deutsche Börse Xetra is planned for 23 May.
The fund seeks to replicate the performance of the MSCI ACWI SRI S-Series PAB 5% Capped Index (Bloomberg: MXACSSNU Index). Its objective is to provide investors with a worldwide exposure (including both developed and emerging markets) to companies which have high Environmental, Social and Governance (“ESG”) standards. In addition, this climate ETF aims to comply with the Paris Aligned Benchmark (PAB) targets of reducing greenhouse gas intensity by at least 50% relative to the initial investment universe and achieving an additional decarbonisation target of at least 7% each year[2].
The fund is classified as Article 8[3] as per SFDR. It promotes environmental and/or social characteristics by investing in companies assessed according to ESG criteria such as environmental opportunity, pollution and waste, human capital, corporate governance and based on their efforts to reduce their exposure to coal and unconventional fossil fuels. As a result, companies involved in sectors with a potentially high negative ESG impact, those subject to significant violations of the UN Global Compact principles and those involved in severe ESG-related controversies are excluded.
The fund commits to invest a minimum of 35% of its net assets in sustainable investments and aims to keep a Tracking Error below 1% versus the underlying index.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM comments:
« We observe a strong interest from clients for SRI PAB ETFs and are proud to expand our range, particularly within our Irish ICAV. The aim is to capture long-term growth opportunities offered by global equities while integrating a serious and strong ESG approach. With this new ETF, clients will have access to both developed and emerging equity markets”.
The AUM invested in the Net Zero 2050 theme, which includes PAB ETFs, showcased an impressive rise of 2,456% over the last ten years, moving from EUR 2.3bn in 2014 to EUR 58.5bn in 2024[4]. Even though the weight of this theme is still low compared to the total assets managed by all ETFs (3.4%), its growth demonstrates market's appetite for climate ETFs.
Key fund characteristics (as of 21 May 2024) :
|
Fund name |
BNP Paribas Easy MSCI ACWI SRI S-Series PAB 5% Capped UCITS ETF |
|
ISIN codes |
EUR Capitalisation : IE0004HBJKG0 USD Capitalisation : IE000WQ5O293 |
|
Bloomberg code |
EUR Capitalisation : PAACE FP (Euronext Paris), PAACE IM (Borsa Italiana), ESAB GY (Xetra) USD Capitalisation : PAACU FP (Euronext Paris), PAACU SW (SIX Swiss Exchange), ESAC GY (Xetra) |
|
Benchmark Index |
MSCI ACWI SRI S-Series PAB 5% Capped (NTR) Index |
|
Bloomberg code |
MXACSSNU |
|
Investment type |
Physical |
|
Fund currency |
US Dollar |
|
NAV frequency |
Daily |
|
Rebalancing |
Quarterly |
|
SRI(a) |
4 |
|
SRII (b) |
6 |
|
Entry/Exit fee(c) |
Up to 3% |
|
OCR(d) |
20 bps |
|
Tracking error |
<1% (in accordance with the prospectus) |
|
SFDR category(e) |
8 |
|
AMF category(f) |
1 |
|
Listing |
Euronext Paris, Borsa Italiana, SIX Swiss Exchange - Deutsche Börse Xetra on 23/05/24 |
(a) Summary Risk Indicator, determined on a scale of 1 (lowest) to 7 (highest), the higher the risk the longer the investment horizon. It is calculated on a periodic basis and may therefore change over time. Regular consultation of the Fund's KIID/DICI is recommended.
(b) Synthetic risk reward indicator
(c) Entry/exit fee maximum 3% on the primary market only
(d) Ongoing Charge Ratio (on an annual basis)
(e) Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector. Article 8 - product promoting environmental or social characteristics.
(f) AMF (Autorité des marchés financiers) Doctrine Category 1 – approach based on significant commitment to management.
Footnotes
- ^ Source: BNPP AM as at 30/04/24
- ^ As defined in the framework of the European Benchmark Regulation
- ^ Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector. Article 8 - product promoting environmental or social characteristics.
- ^ Source : trackinsight - Unveiling the Rise of CTB and PAB ETFs: A Decade of Sustainability Growth | Trackinsight
