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BNP Paribas Asset Management (‘BNPP AM’) announces the further expansion of its fixed income ETF range with the launch of two new SFDR Article 81 funds, BNP Paribas Easy € Corp Bond SRI Fossil Free Ultrashort Duration UCITS ETF and BNP Paribas Easy USD Corp Bond SRI Fossil Free UCITS ETF.
Both are sub-funds of the BNP Paribas Easy Luxembourg SICAV and were listed on Euronext Paris, Borsa Italiana and Deutsche Börse Xetra from 3 October. BNPP AM’s range of fixed income index funds includes 12 ETFs2 covering sovereign bonds, investment grade and high yield corporate credit, and green, social and sustainability-linked bonds.
BNP Paribas Easy € Corp Bond SRI Fossil Free Ultrashort Duration UCITS ETF is an ultra short duration SRI3 strategy designed to enhance our successful range of fixed income ETFs that now has totals more than EUR 10 billion of assets under management4. It replicates the performance of the Bloomberg MSCI Euro Corporate Ultrashort Fixed and Floating Rate SRI Index, an investment grade bond index with approximately 400 constituents and an average duration of 0.7 years5. The index is constructed using MSCI’s sustainability criteria including value-based, controversial sectors and fossil fuel exclusions; ‘red flag’ ESG controversy exclusions; and the potential additional exclusion of the worst ESG-rated issuers6.
Alongside this new ultra short duration ETF, BNPP AM offers a wide range of short term investment solutions and manages more than EUR 105 billion7 in money market funds and short duration fixed income products, with sustainability integration across the full range of publicly-available funds.
The addition of a US dollar corporate bond SRI strategy marks an important step in the expansion of BNPP AM’s fixed income ETF range. BNP Paribas Easy USD Corp Bond SRI Fossil Free UCITS ETF is designed to replicate the performance of the Bloomberg MSCI US Corporate SRI Sustainable ex Fossil Fuel Bond Index, an investment grade bond index with approximately 3,400 constituents and an average duration of 6.8 years8. The index is constructed using MSCI’s sustainability criteria including value-based, controversial sectors and fossil fuel exclusions, and ‘red flag’ ESG controversy exclusions. A minimum MSCI ESG rating of BBB is required for issuer inclusion9.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM comments:
"Interest in fixed income ETFs has continued to gain momentum through the course of 2023, building on the strong growth seen last year when assets under management rose by almost one third. We launched our first ESG fixed income ETF in 2019, and have continued to expand our range ever since as we seek to meet growing investor demand for systematic fixed income exposure based on an ESG approach. These two new fossil-free funds offer investors additional asset allocation building blocks targeting low levels of tracking error relative to those of non-ESG benchmarks.”
BNPP AM manages ETF and index fund assets totalling EUR 47 billion, including thematic and sustainable products.10.
Key fund characteristics (as at 3 October 2023)
Fund name BNP Paribas Easy € Corp Bond SRI Fossil Free
Ultrashort Duration UCITS ETF
ISIN codes EUR Capitalisation: LU2533812058
EUR Distribution: LU2533811910
Bloomberg code EUR Capitalisation: SRIUC FP (Euronext Paris);
BJLI GY (Xetra); SRIUC IM (Borsa Italiana)
EUR Distribution: SRIUD FP (Euronext Paris); BJLL GY (Xetra)
Index name Bloomberg MSCI Euro Corporate Ultrashort
Fixed and Floating Rate SRI (NTR) Index
Bloomberg code I37260EU:IND
Replication Physical
Fund currency EUR
NAV frequency Daily
Rebalancing Monthly
SRI(a) 2
Entry/Exit fee(b) 0%
OCR(c) 0.10%
Tracking error <1% (in accordance with the prospectus)
SFDR category(d) 8
AMF category(e) 1
Listing Euronext Paris, Deutsche Börse Xetra, Borsa Italiana
Fund name BNP Paribas Easy USD Corp Bond SRI Fossil Free UCITS ETF
ISIN codes USD Capitalisation: LU2616774076
USD Distribution: LU2616776444
Bloomberg code USD Capitalisation: USCBC FP (Euronext Paris);
BJLJ GY (Xetra); USCBC IM (Borsa Italiana)
USD Distribution: USCBD FP (Euronext Paris); BJLK GY (Xetra)
Index name Bloomberg MSCI US Corporate SRI Sustainable
ex Fossil Fuel Bond Index
Bloomberg code I37668US:IND
Replication Physical
Fund currency USD
NAV frequency Daily
Rebalancing Monthly
SRI(a) 3
Entry/Exit fee(b) 0%
OCR(c) 0.20%
Tracking error <1% (in accordance with the prospectus)
SFDR category(d) 8
AMF category(e) 1
Listing Euronext Paris, Deutsche Börse Xetra, Borsa Italiana
(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) Entry/exit fee maximum 3% on the primary market only
(c) Ongoing Charge Ratio (on an annual basis)
(d) 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.
(e) AMF (Autorité des marchés financiers) Doctrine Category 1 – approach based on significant commitment to management.
Footnotes
- 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
- Exchange Traded Funds
- Sustainable and Responsible Investment
- Source: BNPP AM as at 30/09/23
- As at 30/09/23
- Further information about MSCI’s ESG methodologies is available here: https://www.msci.com/esg-and-climate-methodologies
- Source: BNPP AM as at 30/09/23
- As at 30/09/23
- Further information about MSCI’s ESG methodologies is available here: https://www.msci.com/esg-and-climate-methodologies
- Source: BNPP AM as at 31/08/23
