BNP Paribas AM Launches New Suite of Active ESG Bond ETFs
BNP Paribas Asset Management (BNPP AM) announced today the launch of its new ESG active fixed income ETF range, with the rollout of its first two funds, including the BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR Government Bond ETFs.
According to BNPP AM, the new range aims to provide ETF products that apply an index-like approach and replicate the performance of underlying benchmarks, while integrating a sustainable approach through the application of the firm’s proprietary ESG methodology, exclusion policies and active engagement.
Marie-Sophie Pastant, Head of Index & ETF Strategies – Portfolio Management at BNPP AM said:
“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.”
BNP Paribas Easy Sustainable EUR Corporate Bond is an Article 9 fund according to SFDR regulation, with a 100% sustainable investment universe, benchmarked to Bloomberg Euro Aggregate Corporate, while the 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%, using the J.P. Morgan EMU Investment Grade Index as a benchmark.
The launch of the new ESG active fixed income ETF range follows the release by BNPP AM in January of its new Global Sustainability Strategy (GSS), which included a goal to grow its ranges of sustainable and impact investment solutions across themes including climate, nature-based solutions and economic equality, and updated the firm’s approach to applying sustainability considerations in its investments.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM said:
“Fixed income will be a big focus for investors looking to navigate a challenging market environment in 2024. For those rethinking fixed income in their portfolios, active ESG fixed income management through an ETF structure provides investors with diversification, sound sustainable credentials and an affordable, convenient approach to portfolio construction.”