BNP Paribas Asset Management, a leading global investment management firm, is set to launch an eponymous Net Zero Transition Equity fund in a bid to reinforce its commitment to sustainability and addressing climate change.
The launch of the BNP Paribas Global Net Zero Transition Equity fund comes following an increasing demand for investment products aligned with net-zero objectives, according to ESG News.
The firm is aiming to provide investors with an innovative strategy to support their sustainability goals while delivering strong financial returns.
The fund is a Luxembourg-domiciled equity fund designed to offer investors exposure to a well-diversified strategy across sectors, regions, and market capitalisations.
With a primary objective of achieving net-zero alignment, the fund employs a Just Transition lens and focuses on companies committed to decarbonisation and sustainable growth.
ne of the key features of the fund is its high conviction portfolio, selected from a pool of over 1,000 global companies with a focus on achieving net-zero emissions. The portfolio is diversified by geography, size, and sector, with a strong representation of technology, industrials, and materials companies.
Additionally, the fund is managed actively, using a behavioural fundamental approach to deliver consistent excess returns.
The BNP Paribas Global Net Zero Transition Equity fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) and is committed to investing in holdings that qualify as ‘sustainable’.
Moreover, the fund integrates a charity share class to support Electriciens Sans Frontières, an international NGO fighting energy poverty and promoting renewable energy solutions.
Nadia Grant, Head of Global Equities at BNPP AM and Portfolio Manager of the BNP Paribas Global Net Zero Transition Equity fund, commented, “Net zero can be achieved through directing investments towards companies providing solutions and those adopting solutions to decarbonise and therefore contribute to net zero alignment. With this new equity fund, we aim to provide an innovative strategy aligned with BNPP AM Net Zero commitments while leveraging our social and environmental expertise and focusing on engagement.“
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