Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNP Paribas Asset Management explains to Romain Thomas why the firm has launched a platform for ETFs in Dublin.
1-What was the driver behind setting up a platform for ETFs in Dublin?
The launch of the BNP Paribas Easy ICAV will enable us to expand our ETF offering to investors in countries that favour Irish-domiciled ETFs, including the UK, Switzerland, Netherlands and in the Nordic countries, where BNP Paribas Asset Management is already well established and where we see growing client demand.
2-Why did you choose Dublin?
Ireland has a well-developed ETF ecosystem that benefits funds with exposure to US equities, as well as global equities, where we are planning further thematic ETF launches. When we decided to launch the BNP Paribas Easy S&P 500 ESG UCITS ETF with physical index replication, it was obvious to create the ICAV to offer the most efficient wrapper for US Equities to our investors.
3-How is the ETF business growing for BNP Paribas Asset Management?
We are proud of having collected EUR3.7 billion in the first half year 2023 for the BNP Paribas Easy ETF and index fund range which is the highest growth rate (13.6 per cent) among the Top 15 European ETF promoters. These numbers give us comfort that we are following the right strategy by having a strong focus on ETFs tracking ESG or SRI indices, many of them carrying sustainability labels for France, Belgium and Germany.
4-Is there an increase in appetite for ETFs across Europe?
Indeed, the popularity of ETFs across Europe is increasing. Money flow into ETFs reached EUR104.5 billion in the first half year 2023 compared to EUR43.9 billion in the previous half year. Traditionally most ETF investments goes to Equity, but since yield is back the ratio of Fixed Income ETFs attracting inflows is increasing significantly. Commodity ETFs are facing outflows in 2023 after a successful previous year. When it comes to usage of ETFs there is a strong trend that private self-directed investors are increasingly embracing ETFs by investing a fix amount or monthly instalments into their favorite ETF.
5-What new products will you be producing?
Of course, you will see more ESG ETFs tracking US or global equity indices being launched under the ICAV. Generally, we will also expand our offer for ESG ETFs tracking government bond and corporate bond indices with different credit and duration profiles and currencies. We are also constantly conducting research to identify new investment themes suitable for index investing.
6-What distribution methods are you using to distribute your ETFs?
We have a strong pan-European ETF specialist sales team which is marketing our ETF offer directly to institutional investors and wholesale clients in major European countries. In addition, we can leverage on a strong team of client relationship managers globally. Launching a marketing campaign dedicated to our ETF offer from time to time has also proven to support our sales effort successfully. Our ETF specialists present our capabilities at a selection of industry events and invite business partners to discuss in depth and local language about our ETFs at roundtables organised in European metropolises.