BNP Paribas THEAM Quant strategies and BNP Paribas Exane Research have partnered to launch a fund targeting renewable energy investments. THEAM Quant New Energy Opportunities (NEO) will be exposed to an index leveraging the research capabilities of Exane, combining them with the equity selection expertise of BNP Paribas Quantitative Investment Strategies (QIS). The fund will use a disciplined framework to identify companies with high ESG standards and robust financial fundamentals which play a key role in the evolving new energy ecosystem. It is expected to be the first of a range of solutions addressing “the key meta investment themes of the future”, the fund creators said, with an underlying strategy employing BNP Paribas QIS’ dynamic and diversified approach, combining AI data processing with industry expert analysis. This will entail identifying the activities, technologies and capital investments most aligned with the net zero transition. This approach will be enriched by big data technology allowing for companies to be ranked based on their exposure, enabling the assessment of their long-term financial robustness and enhancing the fund’s overall risk return profile. “We are pleased to offer clients an opportunity to access the burgeoning investment opportunity within the new energy ecosystem that is developing around global government targets to reach net zero by 2050,” said Roberto Bartolomei, Head of BNP Paribas Global Markets’ Sales for THEAM Quant funds. The fund’s allocation universe will include global coverage of liquid companies across three main regions – Europe, North America and Asia – weighted through a quantitative optimisation process and rebalanced on a quarterly basis. “Many key segments of the net zero transition are not yet fully developed, so it’s increasingly important to identify precisely and continuously where investment is needed – especially over the next five to ten years,” said Frank Megel, Director of Research at BNP Paribas Exane.
