BNP Paribas Asset Management has launched the BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF, a listed index fund offering investors exposure to the Chinese market, by selecting the best-rated companies in terms of ESG approach.
The firm writes that this ETF is the first listed fund to invest in a Chinese index using an SRI methodology. It has been traded continuously on Euronext Paris and Deutsche Börse Xetra since 27 July 2021.
BNPP AM is expanding its range of responsible index funds with the launch of BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF, which gives investors access to large and mid-cap Chinese companies with the best ESG profile in their sector, using a ‘best-in-class’ approach. The starting investment universe is the MSCI China Index, consisting of approximately 750 stocks. The MSCI China Select SRI S-Series 10% Capped Index consists of around 100 stocks, with a maximum index weight of 10 per cent.
In addition to ESG criteria, those companies that do not respect the principles of the United Nations Global Compact or are involved in ESG controversies are excluded from the index. The same applies for companies involved in controversial weapons, tobacco, adult entertainment, alcohol, gambling, genetically modified organisms, nuclear power and fossil fuels.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments: “The originality of this approach is that it allows the implementation of a sustainable investment strategy in a key economic region. This new ETF completes our ESG index fund offering, with EUR12.8 billion under management, making BNPP AM one of the market leaders.”
The fund has an ongoing charge of 0.45 per cent.