BNP Paribas Asset Management (BNPP AM) has launched the first two equity vehicles of its Active Beta exchange-traded fund (ETF) range. BNP Paribas Easy Sustainable Japan UCITS ETF and BNP Paribas Easy Sustainable US UCITS ETF are sub-funds of the BNP Paribas Easy Irish ICAV, and began listing on 3 September on Euronext Paris. Later this month, they will also be listed on Deutsche Börse Xetra. The BNP Paribas Easy Active Beta ETF range combines a traditional indexing approach with an active integration of BNPP AM’s proprietary ESG methodology. The ETFs are designed for investors seeking a more focused approach to sustainability that can be adapted quickly to evolving regulations and label criteria, while keeping a relatively low tracking error. Key highlights of the fund range include: beta exposure to mainstream benchmarks; minimised tracking error versus the investment universe; independent ESG scoring methodology and recognised sustainable approach; ability to build portfolios matching precise sustainable investment thresholds; and high adaptability to controversies and changes in regulation and labels. “These two new launches are the natural next step of our Active Beta range,” said Marie-Sophie Pastant, Head of Index and ETF Strategies for Portfolio Management at BNPP AM. “Our aim is to develop a new segment of equity funds aiming to be as close as possible to mainstream benchmarks while integrating solid ESG features developed by BNPP AM. Those funds will decarbonate by 50% their starting universe.” BNP Paribas Easy Sustainable Japan UCITS ETF is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), seeking a sustainable investment of at least 55% while providing exposure to the Japanese equity market. BNP Paribas Easy Sustainable US UCITS ETF is also an Article 8 fund, seeking a sustainable investment of at least 45% while providing exposure to the US equity market. Both funds integrate BNPP AM’s ESG approach and Paris-Aligned Benchmarks exclusions – which makes them eligible to sustainable labels criteria. BNPP AM manages ETFs and index fund assets totalling €51.9 billion, including thematic and sustainable products. Around 90% of its ETF range is classified as either Article 8 or 9 under SFDR, and more than 70% has a European sustainability label.
