BNP Paribas Asset Management (‘BNPP AM’) announces the launch of a socially responsible credit exchange-traded fund, BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF. This is a tracker that replicates the Bloomberg Barclays MSCI Euro Corporate SRI Sustainable Reduced Fossil Fuel Index. It provides investors with low carbon exposure to around 400 euro-denominated investment grade bonds, selected using environmental, social & governance (‘ESG’) criteria.
This new fund is an addition to the BNP Paribas Easy range of ETFs and is part of a new strategy aimed at strengthening BNPP AM’s index solutions capability within socially responsible investment (‘SRI’) and bond indices in 2019.
Isabelle Bourcier, Global Head of Quantitative & Index at BNP Paribas Asset Management, comments:
“The launch of BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF is part of a dual approach to develop our low carbon footprint SRI offering and our bond index range. At the end of December 2018 we managed EUR 1.9 billion in ESG index funds.”
The Bloomberg Barclays MSCI Euro Corporate SRI Sustainable Reduced Fossil Fuel index includes debt securities of the best-rated (investment-grade) bond issuers with an MSCI ESG rating above BBB, using the best-in-class (i.e. best in their category) selection approach. It excludes companies that do not respect UN Global Compact principles and that are involved in sectors such as alcohol, gambling, pornography, tobacco, nuclear, genetically-modified organisms (‘GMOs’) and weapons. In addition, the index offers investors reduced exposure to companies involved in fossil fuels, one of the most carbon-intensive areas.
BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF is a sub-fund of BNP Paribas Easy, a SICAV registered under Luxembourg law. It will list on Euronext on 19 February 2019 and on Xetra on 26 February 2019. It is not available to UK investors.
Investment in the fund is subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being at risk of capital loss. For a complete description and definition of the risks, please consult the latest available prospectus and KIID of the fund. Investors considering subscribing to a fund should carefully read its most recent prospectus and KIID, which can be downloaded from www.easy.bnpparibas.com.
