BNP Paribas Asset Management (BNPP AM) today announced the launch of its new line of active ESG fixed income ETFs, with the launch of its first two funds, including the BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR ETFs Government Bond.
According to BNPP AM, the new range aims to provide ETF products that apply an index-like approach and replicate the performance of the underlying benchmark indices, whilst integrating a sustainable approach through the application of the company's proprietary ESG methodology. , exclusion policies and active involvement.
Marie-Sophie Pastant, Head of Index and ETF Strategies – Portfolio Management at BNPP AM said:
This new range combines our customized sustainable methodology with our indexing expertise. It will allow us to react promptly to any controversies, without needing to wait for the next index rebalance, and respond quickly to the changing environment. This will allow us to more easily comply with the different sustainability label criteria.”
BNP Paribas Easy Sustainable EUR Corporate Bond is an Article 9 fund in accordance with SFDR regulation, with a 100% sustainable investment universe, referenced to the Bloomberg Euro Aggregate Corporate, while BNP Paribas Easy Sustainable EUR Government Bond is a of Article 8 in accordance with the SFDR regulation, with a targeted sustainable investment of at least 30%, using the JP Morgan EMU Investment Grade Index as a reference.
The launch of the new range of active ESG fixed income ETFs follows BNPP AM's launch in January of its new Global Sustainability Strategy (GSS), which included the aim of increasing its range of sustainable investment solutions and impact on topics including climate, nature-based solutions and economic equality, and updated the company's approach to applying sustainability considerations to its investments.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs and 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 offers investors diversification, solid and sustainable credentials and an affordable, convenient approach to portfolio construction.”
