BNP Paribas AM launches two new sustainable fixed income ETFs

BNP Paribas AM has announced today the launch of the first two funds of its new range of fixed income ETFs. These are the BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR Government Bond, two innovative sub-funds of the BNP Paribas Easy range, SICAV domiciled in Luxembourg. Both began trading on February 20 on Borsa Italiana and Deutsche Börse Xetra and are available to Spanish investors.

The range of active fixed income ESG ETFs from BNP Paribas Asset Management applies a similar approach to that of the indices combined with its own sustainability approach. Investors will have access to the ESG methodology, exclusion policies and active dialogue work of BNP Paribas Asset Management. The manager integrates its own sustainability approach while trying to replicate the performance of the benchmark index, which will provide it with the necessary flexibility to adapt to future regulatory changes.

BNP Paribas Easy Sustainable EUR Corporate Bond

The BNP Paribas Easy Sustainable EUR Corporate Bond is Article 9 according to the Sustainable Finance Disclosure Regulation (SFDR), with a 100% sustainable investment universe. The benchmark index is the Bloomberg Euro Aggregate Corporate, an investment grade debt index with an average duration of 4.4 years.

BNP Paribas Easy Sustainable EUR Government Bond

The BNP Paribas Easy Sustainable EUR Government Bond is Article 8 according to the SFDR, with a sustainable investment objective of at least 30%. The benchmark index is the J.P. Morgan EMU Investment Grade, an investment grade debt index with an average duration of 7.1 years.

The investment universe of both ETFs is made up of the components of the respective benchmark indices. After applying the ESG integration approach of BNP Paribas Asset Management, their weights could vary with respect to those of the index. In addition, the sub-fund may not invest in some of the components of the corresponding benchmark index. The sub-fund's objective is to achieve a performance comparable to that of the index.

Both ETFs will enjoy greater alignment with the preferences of the MiFID II directive, better communication of ESG issues to clients and an independent approach to sustainability.

In a challenging market environment like the one expected in 2024, we believe that many investors will increase their focus on fixed income. For those who are reconsidering the allocation to fixed income in their portfolios, active management of ESG fixed income through an ETF offers diversification, solid sustainability credentials, and an affordable and convenient approach to portfolio construction. PRESS RELEASE These new active ESG-focused ETFs combine a proprietary methodology and the experience of our management teams in indexed products. They will allow us to react quickly to any controversy that may arise without having to wait for the next index adjustment and to respond to the evolution of the environment. This will enable us to comply with the different criteria established by sustainability labels and the requirements of our clients in Spain.

Sol Hurtado de Mendoza, General Manager of BNP Paribas AM for Spain and Portugal