BNP Paribas Asset Management (‘BNPP AM’) announces today the launch of the first two equities funds in its innovative Active Beta exchange-traded funds (‘ETFs’) range. BNP Paribas Easy Sustainable Japan UCITS ETF[1] and BNP Paribas Easy Sustainable US UCITS ETF are sub-funds of the BNP Paribas Easy Irish ICAV and began listing on 03 September on Euronext Paris and will be listed later this month on Deutsche Börse Xetra.
The BNP Paribas Easy Active Beta ETF range is an innovative suite combining a traditional indexing approach with an active integration of BNPP AM’s proprietary ESG methodology. These ETFs are designed for investors who are seeking a more focused approach to sustainability, one that can be adapted quickly to evolving regulations and label criteria, while keeping a relatively low tracking error.
Key highlights of our Active Beta ETFs:
- Beta exposure to mainstream benchmarks
- Minimising tracking error[2] versus the investment universe
- BNPP AM independent ESG[3] scoring methodology & recognised sustainable approach
- Ability to build portfolios matching precise sustainable investment thresholds (SI %)
- Highly adaptable to controversies and changes in regulation & labels
Marie-Sophie Pastant, Head of Index & ETF Strategies - Portfolio Management at BNPP AM comments:
"These two new launches are the natural next step of our Active Beta range. Our aim is to develop a new segment of equity funds aiming to be as close as possible to mainstream benchmarks, with ex ante TE between 1% to 1.5%, while integrating solid ESG features developed by BNPP AM. Those funds will decarbonate by 50% their starting universe."
BNP Paribas Easy Sustainable Japan UCITS ETF is an Article 8 fund according to SFDR regulation, seeking a Sustainable Investment of at least 55% while providing exposure to the Japanese equity market. The Benchmark Index is MSCI Japan Net Total Return Index.
BNP Paribas Easy Sustainable US UCITS ETF is an Article 8 fund according to SFDR regulation, seeking a Sustainable Investment of at least 45% while providing exposure to the US equity market. The Benchmark Index S&P 500 Net Total Return Index.
Both funds integrate BNPP AM’s ESG approach and integrate PAB exclusions which makes them both eligible to sustainable labels criteria (French SRI label and Toward Sustainability label).
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM comments:
“As a leader on sustainable investment, our ambition is to provide our clients with a comprehensive range of ESG & SRI ETFs that cater to the diverse needs of investors across the entire spectrum of sustainable investing. Offering ETFs that combine a recognised ESG approach, high sustainable investment and ambitious decarbonisation target, while providing the benefits of index-based investing, including a reasonable tracking error, will answer the increasing demand from institutional clients and distributors to integrate ESG factors in their portfolio.”
BNPP AM manages ETFs and index funds assets totalling EUR 51.9 billion, including thematic and sustainable products[4]. 90% of BNPP AM’s ETF range is classified as SFDR Article 8 or 9 and more than 70% of the range has a European sustainability label (either ISR5, TSI6, FNG7 or Austria8).
Key fund characteristics (as of 20 February 2023)
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BNP Paribas Easy Sustainable Japan UCITS ETF
BNP Paribas Easy Sustainable US UCITS ETF
Prospectus guidelines and the KIID are leading. Source: BNP Paribas Asset Management as of 31.07.24
(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. BNP Paribas Asset Management launches two ESG equities Active Beta ETFs. UK.pdf
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Footnotes
- ^ [1] ETF: Exchange Traded Fund
- ^ [2] Ex-ante one year rolling tracking error target
- ^ [3] ESG: Environmental, Social & Governance. ESG assessments are based on BNPP AM's proprietary methodology which integrates all 3 aspects of E, S & G.
- ^ [4] Source: BNPP AM as at 28/06/24
- ^ [5] OCR: Ongoing Charge Ratio (on an annual basis)
- ^ [6] PAB: Paris-aligned benchmark
- ^ [7] TE : Tracking Error
- ^ [8] SFDR: “Sustainable Finance Disclosures Regulation”. Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector. Article 8: funds promoting environmental or social characteristics.
- ^ [9] AMF: Autorité des Marchés Financiers / Doctrine Category 1 – approach based on significant commitment to management
- ^ [10] SI: Sustainable Investment
