BNP Paribas Asset Management has launched the first two equity funds within its Easy Active Beta ETF range. BNP Paribas Easy Sustainable Japan UCITS ETF and BNP Paribas Easy Sustainable US UCITS ETF, which are sub-funds of the BNP Paribas Easy Irish ICAV, are now listed on Euronext Paris and will be listed on Deutsche Börse Xetra later in the month.
BNPP AM’s new range, which combines indexing with an actively-integrated ESG overlay, has been designed for investors who want sustainable exposure to stocks, while maintaining a low tracking error. It does so through beta exposure to mainstream benchmarks while utilising “precise” sustainable investment thresholds, according to the firm.
See also: AllianceBernstein launches US large-cap portfolio for Europe
BNP Paribas Easy Sustainable Japan UCITS ETF, which is an Article 8 fund, targets a sustainable investment threshold of 55% while tracking the MSCI Japan Net Total Return index.
BNP Paribas Easy Sustainable US UCITS ETF, which is also Article 8, seeks a sustainable investment score of at least 45% and is benchmarked against the S&P 500 Net Total Return index.
Both funds will have an ongoing charges ratio (OCR) of 0.2%.
Marie-Sophie Pastant, head of index and ETF strategies – portfolio management at BNPP AM, said: “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.”
See also: Candriam adds market-neutral ESG strategy to fund suite
Lorraine Sereyjol-Garros, global head of development for ETFs and index funds at BNPP AM, added the firm’s ambition is to provide 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.”
