Bringing you live news and features since 2006 

Lorraine Sereyjol-Garros, BNP Paribas
Lorraine Sereyol-Garros, BNP Paribas

AMF gives the green light to active ETFs in France

RELATED TOPICS​

Romain Thomas writes from Paris that, following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is now possible to list active ETFs in France.

The Financial Markets Authority (AMF) by an order from the Minister of the Economy, Finance and Industrial and Digital Sovereignty published in the Official Journal, now allows to list active ETFs on the Paris Stock Exchange, operated by the pan-European stock exchange Euronext.

According to Lorraine Sereyjol-Garros, Global Head of Development for BNP Paribas Asset Management ETF & Index solutions, “this is a very good news for the entire industry in France and our customers who will now be able to have access to these innovative products directly on Euronext Paris. This is a major alignment with, for example Xetra and Borsa Italiana, which already authorized the listing of active ETFs”.

Since the launch of the first French ETF in 2001, the Monetary and Financial Code in France has provided for the possibility of admitting shares of a collective investment on a regulated market, only if this ETF replicates an index and responds to systematic and non-discretionary management. 

Brieuc Louchard, Head of ETF Capital Market at AXA IM, says that “Paris was the last European stock exchange to not allow active ETFs to be listed. Now this anomaly has changed, the Paris financial centre will be able to promote innovations on the French ETF market”.

Beyond the legal aspect, the advantage is also cultural. Investors, especially individual investors have often a national preference for ETF listing. According to Olivier Paquier, Global Head of ETF sales, “we know how much investors favour local stock exchanges in their investment choices, so it was key for us to adapt to the needs of our French customers”. In addition, “international investors look closely at European stock exchanges and appreciate when ETF providers are multi-listed”, he adds.

By combining some of the most useful features of ETFs with the advantages of active management, active ETFs are more flexible than traditional ETFs. 

As the number of active ETFs has increased, more and more French ETF providers are now offering these products from narrow sector-specific funds to those offering broad market exposure.

Besides, Ossiam and Axa IM, BNP Paribas Asset Management has just launched two fixed income ETFs whose ESG approach is actively managed: BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR Government Bond.

These two bond ETFs, offering an active ESG approach, have been listed on Euronext since Tuesday, 2 April, 2024.

Brieuc Louchard from Axa IM says that the firm is also “one of the first ETF providers to list its active ETFs range on Euronext Paris”. This range includes the Axa IM Biodiversity Equity Ucits ETF, Axa IM Climate Equity Ucits ETF, Axa IM Euro Credit PAB Ucits ETF, AXA IM USD Credit PAB Ucits ETF and AXA IM US High Yield Opportunities Ucits ETF (not registered in the UK and consequently not available for any investor in the UK).

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by