BNP Paribas Asset Management launches medical technology and green hydrogen ETFs
BNP Paribas Asset Management (‘BNPP AM’) announces the launch of thematic index funds focused on medical technology (‘med tech’) and the sustainable green hydrogen economy, both of which integrate an ESG[1] approach. Listed since 17 March 2022 on Euronext Paris and the Deutsche Börse Xetra, these new funds broaden BNPP AM's range of thematic ESG ETFs[2], including low carbon, circular economy, blue economy, green real estate and sustainable infrastructure.
- BNP Paribas Easy ECPI Global ESG Med Tech replicates the ECPI Global ESG Medical Tech Index, which selects the 50 most active global stocks within sustainable medical technology, including biotechnology, life sciences tools & services, equipment, supplies and healthcare technology.
- BNP Paribas Easy ECPI Global ESG Hydrogen Economy replicates the ECPI Global ESG Hydrogen Economy index designed to offer investors exposure to the 40 most active companies in the sustainable green hydrogen economy.
Denis Panel, Head of Multi-Asset, Quantitative & Solutions (‘MAQS’) at BNPP AM, comments:
"The healthcare and green hydrogen sectors are enjoying strong growth and are themes of the future, enabling us to offer relevant long-term investment solutions. These two launches expand our range of index funds and demonstrate our desire to be a key provider of thematic ESG ETFs.”
BNP Paribas Easy ECPI Global ESG Med Tech
Over the past decade, the healthcare sector has undergone major developments, driven by multiple technological advances in computer science, robotics and biotechnology, as well as structural factors such population aging. The ECPI Global ESG Medical Tech Index is an equally-weighted index designed to offer investors exposure to the most active listed companies in global developed markets within sustainable medical technology. The investment universe also incorporates ESG filters and sector exclusions[3]. The 50 index constituents are selected from four sectors:
- Biotechnology: companies active in genomic science and genetic medicine/therapy.
- Life Sciences Tools & Services: companies involved in the research, development and production of innovative drugs.
- Healthcare Equipment & Suppliers: companies involved in areas such as manufacturing healthcare equipment and hospital supplies, or designing drug delivery systems.
- Healthcare Technology: companies active in areas such as telemedicine and digital health, connected healthcare devices or robotics.
BNP Paribas Easy ECPI Global ESG Hydrogen Economy
The European Union attributes a key role to hydrogen in its transition efforts, known as the ‘Green Deal’, aimed at achieving carbon neutrality by 2050. Hydrogen, one of the world’s most abundant elements, offers a sustainable alternative to fossil fuels and represents a huge investment potential, with the market expected to reach or exceed USD 150 billion by 2030[4]. The ECPI Global ESG Hydrogen Economy Index consists of 40 companies selected on the basis of their ESG criteria and their efforts to reduce their exposure to coal and unconventional fossil fuels, within two sectors:
- Hydrogen: companies significantly involved in the supply of solutions based on green hydrogen, including production, supply or storage.
- Clean energy: companies significantly involved in the production of electricity from renewable energy used in sustainable hydrogen production plants.
Key fund characteristics as at 17 March 2022
Fund name BNP Paribas Easy ECPI Global ESG Med Tech UCITS ETF
ISIN code LU2365457410
Replication method Physical
Dividend policy Capitalisation
Currency EUR
OCF(a) 0.30%
SFDR category(b) 8
AMF category(c) 1
SRRI(d) 6
Fund name BNP Paribas Easy ECPI Global ESG Hydrogen Economy UCITS ETF
ISIN code LU2365458145
Replication method Physical
Currency EUR
OCF(a) 0.30%
SFDR category(b) 9
SRRI(c) 6
AMF category(d) 1
(a) Ongoing charge (on an annual basis).
(b) Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector. Article 8 - product promoting environmental or social characteristics. Article 9 - product with a sustainable investment objective.
(c) Synthetic Risk & Reward 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. Regular consultation of the Fund's KIID/DICI is recommended.
(d) Category 1 of the Autorité des Marchés Financiers (French financial market regulator) Doctrine – management approach based on significant ESG commitment.
- ENDS -
Footnotes
BNP Paribas Easy is a Luxembourg SICAV in accordance with Directive 2009/65/EC. 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 from them can go down as well as up, and investors may not get their full investment back. The funds described present a risk of capital loss. For a more complete definition and description of risks, please refer to the fund prospectus and KIID. Before subscribing, you are advised to read the most recent version of the prospectus and KIID, available free of charge on our website www.easy.bnpparibas.com. Past performance is no guarantee of future performance.
Risk relating to the inclusion of ESG criteria: the absence of common or harmonised ESG and sustainability criteria definitions and labels at the European level may lead to different approaches by management companies when defining ESG objectives. It also means that it can be difficult to compare strategies incorporating ESG and sustainability criteria, as the selection and weightings applied to certain investments may be based on indicators which may share the same name, but have different underlying meanings. When evaluating a security on the basis of 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 currently 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 the securities of certain issuers. Consequently, fund performance may sometimes be better or worse than the performance of collective investments with a similar strategy.
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.
This material is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
This material is issued and has been prepared by the investment company. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time. This document does not constitute investment advice or form part of an offer or invitation to subscribe for or to purchase any financial instrument(s) nor shall it or any part of it form the basis of any contract or commitment whatsoever.
Whilst the funds described herein have been established as UCITS (in accordance with the UCITS Directive) in Luxembourg, they have not been registered in the UK, therefore the promotion of these funds and the distribution of this document in the UK are accordingly restricted by law.
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This document is directed only at person(s) who have professional experience in matters relating to investments (‘relevant persons’). Any investment or investment activity to which this document relates is available only to and will be engaged in only with Professional Clients as defined in the rules of the Financial Conduct Authority. Any person who is not a relevant person should not act or rely on this document or any of its contents.
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As at March 2022.
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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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