- Novethic's new “SRI theme-based funds” category: Parworld Environmental Opportunities, among the 7 out of 22 funds selected
- Broadening of the Responsible Investment range, with two bond funds and one equity fund
For the first time, Novethic has analysed the funds available on the French market using a SRI theme-based investment approach. Only seven funds - including Parworld Environmental Opportunities – out of 22 have been selected by Novethic for its new “SRI theme-based funds” category. This classification testifies to the genuine inclusion of Environment, Social and corporate Governance aspects (ESG) in the construction of the fund. BNPP AM's SRI commitment is also illustrated in the launch of three new funds (bonds and equities) to address different investment profiles.
The results of the Novethic study were made public on October 16. The study analysed the quality of the inclusion of ESG aspects in the construction of SRI theme-based portfolios. The analysis was a means of assessing the real measures implemented by fund management companies: the inclusion of SRI expertise in the analysis and selection of securities, the application of an ESG filter or product management by the SRI team. Novethic's study of these different criteria was used to select the best funds that could be included in the new “SRI theme-based funds” classification.
With its dedicated resources and expertise in Responsible Investment, BNP Paribas Asset Management is launching two bond funds and one equity fund. These will enable investors to fully capitalise on the opportunities for growth related to sustainable development, and strictly in accordance with international standards, such as the 10 principles of the United Nations' Global Compact.
The bond fund, Parvest Euro Bond Sustainable Development, consists of bonds issued by Eurozone governments, supranational organisations and companies. The second bond fund, Parvest Euro Corporate Bond Sustainable Development, is made up of euro bonds issued by listed or unlisted companies. These bond funds are managed using an investment process that combines the macro-economic scenario and rigorous selection of issuers including the results of the extra-financial analysis of BNP Paribas Asset Management.
The equities fund, Parvest Europe Sustainable Development, adopts an original investment approach that combines two complementary styles: the “core” investment - 80 to 90% of the portfolio – consists of companies with large capitalisations whose commitments and results in terms of social and environmental responsibility are higher than those in their particular sectors of activity. The “satellite” investment - 10 to 20% of the portfolio – comprises small/medium-sized companies whose products and services (e.g.: clean energies, healthcare service, etc.) contribute directly to sustainable development, and provide substantial growth opportunities.
It is worth remembering that BNP Paribas Asset Management's Responsible Investments represented €8 billion of assets under management and custody at end June 2007.
The Responsible Investment offering includes funds governed by French law (BNP Paribas Etheis, BNP Paribas Obli Etheis), employee savings products (Multipar Phileis range), pension products (BNP Paribas Retraite mutual fund) and theme-based funds for individual and institutional clients. The Responsible Investment range (Equity and Bonds) boasts the best ratings (aaa and aa) attributed by the Novethic agency.
“Responsible Investment has represented a priority for BNP Paribas Asset Management for more than five years. Parworld Environmental Opportunities' listing in Novethic's new “SRI theme-based funds” classification testifies to the quality of the SRI approach, while our three new SRI funds broaden investors' investment choice” explains Eric Borremans, who is in charge of Responsible Investment at BNP Paribas Asset Management.
Since 2002, BNPP AM analysts and managers play an instrumental role in responsible investment and sustainable development initiatives in France, Europe and even worldwide. BNP Paribas Asset Management is a signatory of the United Nations' Principles for Responsible Investment and a founding member of the Enhanced Analytics Initiative (EAI), an international initiative aimed at promoting the extra-financial research produced by brokers and independent research companies. BNP Paribas Asset Management is also a signatory of the Carbon Disclosure Project and holds the vice-chairmanship of the Institutional Investors Group on Climate Change (IIGCC).
BNP Paribas Asset Management (www.bnpparibas-am.com) is a European leader in traditional, indexed and structured investment management. The original core activity of BNP Paribas Investment Partners, BNP Paribas Asset Management has € 244 billion assets under management*, and more than 800 people servicing clients in 69 countries. Responsible Investment is one of BNP Paribas Asset Management's key investment themes, and the company is a globally recognised player in this field. With a dedicated team and a range of Responsible Funds across all asset classes, it holds Novethic's top rating (aaa).BNP Paribas Asset Management's excellence is reflected by Fitch's second-highest rating: M2.
* Figures as at 30 June 2007, assets under advisory included.