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BNP Paribas Asset Management (‘BNPP AM’) announces the launch of BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF and BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF. Listed on Euronext Paris, Borsa Italiana and Deutsche Börse Xetra from 8 March, these two launches enhance BNPP AM's range of bond index funds, which now includes 17 sustainable ETFs1.
BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF aims to replicate the performance of the Bloomberg MSCI Euro Aggregate ex Fossil Fuel SRI Select (NTR) Index and provides investors with exposure to euro-denominated sovereign and corporate investment grade bonds while complying with ESG2 criteria. The index excludes issuers in sectors with a negative ESG impact (such as fossil fuels), those in violation of the principles of the United Nations Global Compact and those involved in ESG-related controversies.
BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF tracks the performance of the JP Morgan ESG EMU Government Bond IG 1-3 Year (TR) Index by investing at least 90% of its assets in debt securities issued by eurozone governments, while complying with ESG criteria. Index constituents are euro-denominated government bonds with maturities between one and three years. The fund complements BNPP AM’s existing offer on the same index for maturities of 3-5 years and for all maturities.
Both funds are classified as SFDR Article 8. BNPP AM’s sustainable bond index range now includes 17 ETFs covering the entire fixed spectrum, from government bonds to corporate bonds and green bonds.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM, comments:
"Bond ETFs have gained momentum in recent years and their market share by assets under management grew by almost 30% in 20223. Following the launch of our first sustainable bond ETF in 2019, we are further expanding our range of products with these two new funds in order to meet investors' growing appetite for fixed income exposure using an ESG approach. These launches provide investors with additional asset allocation building blocks that have limited levels of tracking error estimated to be comparable to those of non-ESG benchmarks. Our range also includes Paris-aligned benchmark bond ETFs.”
Key fund characteristics as at 8 March 2023
BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF
ISIN Code: Capitalisation - LU2533812991; Distribution - LU2533812728
Replication: Physical
Currency: EUR
OCF(a): 0.15%
SFDR Category(b): 8
AMF Category(c): 2
SRRI(d): 3
BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF
ISIN Code: Capitalisation - LU2533810862; Distribution - LU2533810789
Replication: Physical
Currency: EUR
OCF(a): 0.15%
SFDR Category(b): 8
AMF Category(c): 2
SRRI(d): 2
(a) Ongoing charge (on an annual basis)
(b) 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. Article 9 - product with a sustainable investment objective.
(c) AMF (Autorité des marchés financiers) Doctrine Category 2 - funds that do not have a significant engaging approach but are permitted to include a ‘limited’ communication detailing the non-financial criteria taken into consideration.
(d) Synthetic Risk and Reward Indicator, determined on a scale of 1 to 7 (7 being the highest level of risk). It is calculated on a periodic basis and may therefore change over time. Regular consultation of the Fund's KIID/DICI is recommended.
Footnotes
- Exchange Traded Funds
- Environmental, Social and Governance
- Source: ETFGI
