BNP Paribas Asset Management launches first Blue Economy ETF
- BNP Paribas Asset Management (‘BNPP AM’) announces the launch of the first blue economy ETF (exchange-traded fund), BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF. The ETF is listed on Xetra and Euronext and has a TER[1] of 0.30%.
- The fund aims to invest in companies from the global developed market which are the best placed to seize opportunities provided by the sustainable use of ocean resources.
- It tracks the ECPI Global ESG Blue Economy index, an equally-weighted index providing exposure to 50 large caps selected for their sustainable participation in the blue economy. The index conforms to UN Sustainable Development Goal (‘SDG’) 14: ‘Life below water'.
Following the launch of the first circular economy ETF in May 2019, BNPP AM is expanding its range of sustainable thematic investments through the launch of the first ETF based on the blue economy theme. The blue economy is defined by the World Bank as the sustainable use of ocean resources for economic growth, improved incomes and jobs, and healthy ocean ecosystems.
This new ETF replicates an index from ECPI, an index supplier specialising in ESG for 20 years, whose methodology is primarily based on the environmental, social & governance (ESG) criteria of listed companies globally. Companies are selected for their participation in the blue economy and listed according to five categories: coastal livelihood (protection, eco-tourism), energy & resources (offshore wind, marine biotech, wave & tidal), fisheries & seafood, pollution reduction (recycling/waste management, environmental services) and maritime transport. The equally-weighted index consists of those 50 companies with a positive ESG rating and with the largest market capitalisation within their category; it excludes notably, companies involved in systematic violations of the UN Global Compact principle and arms production, and companies that derive more than 10% of their revenues from tobacco, thermal coal extraction or unconventional oil & gas[2].
The theme of the fund is fully aligned with BNPP AM’s sustainable investment priorities of energy transition, environmental protection and equality & inclusive growth.
BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF has been traded continuously since 6 October 2020 on the German stock exchange Xetra, and Euronext during market opening hours.
Robert-Alexandre Poujade, ESG Analyst in BNPP AM’s Sustainability Centre, comments:
“The ecosystem of the ocean has characteristics and resources that are essential to our well-being and to the prosperity of the global economy, although their sustainability is now under significant threat. Whether for tourism employment or offshore wind, the ocean is also a formidable reservoir of biodiversity to be preserved at all costs to maintain our food security and our health, and to protect our coastal areas. It is also one of our best allies in the fight against climate change, capturing nearly 30% of the CO2 emissions that human activity emits."
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments:
"The launch of the first blue economy ETF globally is a logical continuation of our strong commitment to develop ESG systematic approach that we initiated more than 12 years ago. It reaffirms BNPP AM's desire to be a pioneer in ESG investment management and highlights our ambition to be ever more innovative in the responsible investment themes that we offer to our clients.”
Olivier Héreil, Deputy Chief Executive Officer, Asset Management at BNP Paribas Cardif, comments:
“BNP Paribas Cardif made the decision to invest in this blue economy ETF because as a long-term investor, we want to contribute to a greener future. We believe that protecting the world’s oceans and marine and coastal ecosystems - and more broadly, biodiversity - is absolutely critical. Our policy of responsible investing takes these issues into account, enabling us to have a positive impact on society and the environment.”
Key Fund Characteristics
Name BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF
ISIN code LU2194447293
Dividend distribution policy Capitalisation
Replication method Physical
Total Expense Ratio1 0.30%
SRRI2 5
Fund size1 EUR 35 million
1. Source: BNPP AM as at 6 October 2020
2. Synthetic Risk & Reward Indicator [measured on a scale of 1 (lowest) to 7 (highest)]. SRRI is calculated periodically and can change over time. Regular consultation with the KIID is recommended.
The Total Expense Ratio (‘TER’) is the current charge known on the date mentioned in the table. It is advisable to refer to the most recent prospectus for current management fees. Subscription and redemption fees indicate a maximum for subscriptions/redemptions in cash on the primary market for authorised participants. In some cases it is possible to pay less. Investors can obtain the actual amount of subscription and redemption fees from their advisor or financial intermediary. The conditions applicable to purchases and sales on the secondary market are those applicable to this market and to your intermediary. Redemption or subscription fees should not be applied to you. The mediation fees paid depend on the intermediary (execution, custody etc).
Investments made in funds are subject to market fluctuations and the risks inherent in investments in transferable securities. The value of investments and the income they generate can go down as well as up and investors may not get back their full investment. The fund described presents a risk of capital loss. For a more complete definition and description of risks, please refer to the fund's prospectus and KIID. Before subscribing, you must read the most recent version of the prospectus and KIID available free of charge on our website: www.bnpparibas-am.com.
- ENDS -
Footnotes
- ^ [1] Total Expense Ratio
- ^ [2] More information regarding exclusions can be found at www.ecpigroup.com
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As at October 2020.
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About BNP Paribas Asset Management
BNP Paribas Asset Management (‘BNPP AM’) is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable returns for its clients, based on a sustainability-driven approach. BNPP AM’s investment capabilities are focused around five key strategies: High Conviction Strategies, Private Assets, Multi-Asset and Systematic & Quantitative Investments (SQI), Emerging Markets and Liquidity Solutions, with investment processes incorporating quantitative and fundamental analysis.
Sustainability is core to BNPP AM’s strategy and investment philosophy. Among the leaders in thematic investment in Europe1, BNPP AM intends to contribute to the energy transition, environmental sustainability and the promotion of equality and inclusive growth globally. BNPP AM currently manages EUR 526 billion of assets (EUR 641 billion of assets under management and advisory) and benefits from the expertise of more than 500 investment professionals and around 400 client servicing specialists, serving individual, corporate and institutional clients in 68 countries.
Source: BNPP AM, as at 31 March 2023
1 Source: 2nd in Europe for active sustainable thematic strategies, according to BNP Paribas Asset Management analysis based on Morningstar data as at 31/12/2022.
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