BNP Paribas Asset Management launches first ETF on Chinese SRI equity index
BNP Paribas Asset Management (‘BNPP AM’) announces the launch of the BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF[1], a listed index fund offering investors exposure to the Chinese market, by selecting the best-rated companies in terms of ESG[2] approach.
This ETF is the first listed fund to invest in a Chinese index using an SRI[3] methodology. It has been traded continuously on Euronext Paris and Deutsche Börse Xetra since 27 July 2021.
BNPP AM is expanding its range of responsible index funds with the launch of BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF, which gives investors access to large and mid-cap Chinese companies with the best ESG profile in their sector, using a ‘best-in-class’ approach. The starting investment universe is the MSCI China Index, consisting of approximately 750 stocks. The MSCI China Select SRI S-Series 10% Capped Index consists of around 100 stocks, with a maximum index weight of 10%.
In addition to ESG criteria, those companies that do not respect the principles of the United Nations Global Compact or are involved in ESG controversies are excluded from the index. The same applies for companies involved in controversial weapons, tobacco, adult entertainment, alcohol, gambling, genetically modified organisms, nuclear power and fossil fuels.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments:
"The originality of this approach is that it allows the implementation of a sustainable investment strategy in a key economic region. This new ETF completes our ESG index fund offering, with EUR 12.8 billion under management[4], making BNPP AM one of the market leaders."
Key Fund Characteristics (as at 31 August 2021):
|
ETF Name |
ISIN Code |
Share type |
Replication method |
SFDR |
Ongoing charge |
SRRI* |
|
BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF |
LU2314312849 |
Capitalisation |
Physical |
Article 8 |
0.45% |
6 |
* The synthetic risk indicator is determined on a scale of 1 to 7 (7 being the highest level of risk). It is calculated on a periodic basis and may therefore change over time. A regular consultation of the Fund's KIID is recommended.
Investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. The funds described present a risk of capital loss. For a more complete definition and description of risks, please refer to the prospectus and KIID of the funds. Before subscribing, you should read the most recent version of the prospectus and KIID, which are available free of charge on our website www.bnpparibas-am.com.
Risk of taking ESG criteria into account: The absence of common or harmonised definitions and labels regarding ESG and sustainability criteria at the European level may lead to different approaches on the part of management companies when setting ESG objectives. It also means that it may be difficult to compare strategies that incorporate ESG and sustainability criteria as the selection and weightings applied to certain investments may be based on indicators that may share the same name but have different underlying meanings. When assessing a security based on ESG and sustainability criteria, the management company may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may at present be incomplete, inaccurate or unavailable The application of responsible business conduct standards as well as ESG and sustainability criteria in the investment process may lead to the exclusion of securities of certain issuers. As a result, the Fund's performance may sometimes be better or worse than that of funds with a similar strategy.
- ENDS -
Footnotes
- ^ [1] Exchange Traded Fund
- ^ [2] Environmental, Social & Governance
- ^ [3] MSCI's SRI approach follows a methodology based on the construction of indices consisting of selecting companies with the highest ESG ratings, i.e. 25% of the market capitalisation in each sector (‘best in class’ approach), after excluding companies involved in the following activities: alcohol, tobacco, gambling, civilian firearms, military weapons, nuclear energy, adult entertainment and genetically modified organisms (GMOs). More information and a comparison of the methodologies of MSCI’s SRI and ESG indices is available at www.msci.com.
- ^ [4] As at 30 June 2021
BNP PARIBAS ASSET MANAGEMENT UK Limited, ‘the investment company’, is authorised and regulated by the Financial Conduct Authority. Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom.
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As at August 2021.
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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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