BNP Paribas Asset Management Australia (‘BNPP AMAU’) announces the launch of three new Trusts; the BNP Paribas Green Bond Trust (‘Green Bond Trust’), the BNP Paribas EARTH Trust (‘EARTH Trust’) and the BNP Paribas China Equity Trust (‘China Equity Trust’).
As a pioneer in sustainability since 2002, BNP Paribas Asset Management’s investment expertise includes managing high conviction strategies and specialist thematic solutions focused on making a positive contribution to the environment and society. Commenting on the recently launched capabilities, Chief Executive Officer for BNPP AMAU, David Grybas said:
“The demand for quality sustainable, ethical and impact investment products has continued to grow in Australia and New Zealand. BNPP AMAU is thrilled to offer additional capabilities that meet investor demand for sustainable investment solutions, and in the case of the China Equity Trust, provide investors with exposure to a key driver of global economic growth.
The launch of these additional capabilities will allow an even broader range of investors to benefit from BNP Paribas Asset Management’s significant expertise in the sustainable investment space.”
All three Trusts adhere to the BNP Paribas Asset Management firm wide Global Sustainability Strategy which ensures ESG principles are fully incorporated in the investment process. All Trusts are further supported and informed by the BNP Paribas Asset Management Sustainability Centre, a team of 28 dedicated investment professionals located in Paris, New York and Hong Kong.
The BNP Paribas Green Bond Trust invests in global green bonds, a category of fixed income used to finance projects designed to mitigate or address climate change issues. The Trust uses a proprietary integrated engagement approach to identify investments expected to have the most positive environmental impact.
The Green Bond Trust is managed by Head of Euro Multi Strategy Fixed Income, Arnaud-Guilhem Lamy, and further supported by BNP Paribas Asset Management’s dedicated Global Multi-Strategy Fixed Income team.
Why invest in green bonds?
Climate change has brought about new demand for exciting and innovative ways to invest responsibly to command sustainability. Green bonds are the ultimate impact investment to specifically finance projects that are designed to mitigate or address climate change issues. As a result, the green bond market is now the fastest growing segment in global fixed income and offers investors a compelling ‘green’ alternative to traditional bond portfolios.
The EARTH Trust is a Global Equity Long/Short strategy that seeks to provide exposure to the environmental markets thematic in a market neutral vehicle. It combines long positions in the most promising and innovative companies globally within the energy, materials, agriculture and industrials markets that are providing solutions to environmental challenges. These are paired with short positions in overvalued companies or those with unsustainable business models vulnerable to transition risk.
The Trust is co-managed by BNP Paribas Asset Management’s Ulrik Fugmann and Edward Lees who both have more than 20 years of experience in the sector and have collaborated for 18 years. The pair head up the Environmental Strategies Group, a team that has extensive fundamental and thematic investment experience covering portfolio management, research and trading.
Why invest in an environmental-focused, global equity long/short strategy?
We believe the BNP Paribas EARTH Trust offers a market first – an environmentally focused market-neutral strategy for sustainable portfolios. Clients can benefit from investment in the Environmental Markets thematic whilst maintaining protection against equity market volatility. We continue to see a growing number of sustainable portfolios being built in the market – and this delivers what has been a missing piece – a ‘true to label’ alternative investment strategy.
The BNP Paribas China Equity Trust seeks to capitalise on the growth prospects of companies in the “all-China” universe (China A & H-shares). The team focuses on bottom-up company research with a focus on three key structural themes; technology and innovation, consumption upgrading and industry consolidation.
The Trust is managed by David Choa, Head of Greater China Equities team. He is supported by a team of portfolio managers and analysts from offices in Hong Kong and Shanghai.
Why invest in China equities?
Recent regulatory activity and associated market volatility is not new in China, we believe it is short term in nature and can enhance the quality of future growth.
The Chinese equity market is the second largest in the world, driven by China’s transition to a service and consumption-led economy. Yet China only has a small weighting in global indices and client portfolios. We think now is the time to consider China as a stand-alone allocation in portfolios.
BNP PARIBAS ASSET MANAGEMENT Australia Limited is recognised as a Responsible Investment Leader 2021 by the Responsible Investment Association Australasia (RIAA). This acknowledges our commitment to responsible investing; our explicit consideration of environmental, social and environmental factors in investment decision making, our strong and collaborative stewardship; and our transparency in reporting activity, including the societal and environmental outcomes being achieved.
Equity Trustees Limited (“Equity Trustees”) ABN 46 004 031 298 | AFSL 240975 is the Responsible Entity for the BNP Paribas Green Bond Trust (“Green Bond Trust”) (ARSN 651 112 659), the BNP Paribas EARTH Trust (“EARTH Trust”) (ARSN 641 508 705) and the BNP Paribas China Equity Trust (“China Equity Trust”) (ARSN 641 511 757). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT). BNP Paribas Asset Management Australia Ltd (“BNPP AMAU”) ABN 78 008 576 449 | AFSL 223418 is the investment manager of the Trusts. This publication has been prepared by BNPP AMAU to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither BNPP AMAU, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. Investors should obtain a copy of the Product Disclosure Statement (PDS) before making a decision about whether to invest in these products. The individual PDS for each Trust is available from www.bnpparibas-am.com.au or from your adviser.
The BNP Paribas Green Bond Trust, BNP Paribas EARTH Trust and BNP Paribas China Equity Trust ’s Target Market Determination are available here www.bnpparibas-am.com.au. A Target Market Determination is a document which describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.
For more information regarding the Trust please call the Client Service Team on 1800 267 726 (Australia) or +612 9619 6041 or visit our website www.bnpparibas-am.com.au.