BNPP AM launches 2 ESG ETF funds

BNPP AM launches 2 ESG ETF funds

February 21, 2024

ESG
Duurzaam (24) ESG

BNP Paribas Asset Management launches two fixed income ETF funds with an active ESG approach.

BNP Paribas Asset Management (‘BNPP AM’) announces today the launch of the first two funds in its new suite of innovative fixed income exchange-traded funds (‘ETFs’). BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR Government Bond are sub-funds of the BNP Paribas Easy Luxembourg SICAV and began trading on 20 February on Borsa Italiana and Deutsche Börse Xetra.

A solid bespoke sustainability approach, accessible through ETFs BNPP AM’s ESG active fixed income ETF range applies an index-like approach combined with its proprietary approach to sustainability. Investors will benefit from BNPP AM’s proprietary ESG methodology, exclusion policies and active engagement. By integrating its own solid sustainable approach while aiming to replicate the performance of the benchmark, BNPP AM will offer the flexibility to adapt to future regulatory changes.

Marie-Sophie Pastant, Head of Index & ETF Strategies - Portfolio Management at BNPP AM comments: ‘This new range combines our bespoke sustainable methodology with our indexing expertise. It will enable us to react promptly to any controversies without needing to wait for the next index rebalancing, and to respond rapidly to the changing environment. This will allow us to comply more easily with the different sustainability label criteria.’

Starting with two new fixed income funds BNP Paribas Easy Sustainable EUR Corporate Bond is an Article 9 fund according to SFDR regulation, with a 100% sustainable investment universe. The Benchmark Index is Bloomberg Euro Aggregate Corporate, an investment grade bond index with an average duration of 4.4 years.

BNP Paribas Easy Sustainable EUR Government Bond is an Article 8 fund according to SFDR regulation, with a targeted Sustainable Investment of at least 30%. The Benchmark Index is J.P. Morgan EMU Investment Grade Index, an investment grade bond index with an average duration of 7.1 years.

The universe of the sub-fund’s portfolio consists of the components of the Benchmark Index. Following the application of BNPP AM ESG integration approach, their weightings may deviate from those of the Benchmark Index and the sub-fund may not invest in some Benchmark Index components. The sub-fund aims to reach a comparable performance vs the Benchmark. Both funds will benefit from a better alignment with MiFID 2 preferences, enhanced ESG reporting and an independent sustainability approach.

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