BNP Paribas Easy JPM ESG EMBI Global Diversified Composite UCITS ETF

Issuer: BNP Paribas Asset Management

Asset Class: Fixed Income

TER: 45

Trading Currency: USD

Pays Income: False

Listing Date: 08 Oct 2025

Ticker: EMBI

ISIN: LU1547515053

This fund offers targeted exposure to US dollar-denominated bonds issued by sovereign and quasi-sovereign entities across a diverse range of emerging market countries. It aims to replicate the performance of an index that applies a comprehensive environmental, social, and governance (ESG) filter to a globally diversified emerging market debt benchmark. The strategy is tailored for investors looking to capture the potentially higher yields associated with emerging market government debt while simultaneously aligning their portfolios with sustainable and responsible investment criteria. By employing a physical replication method, the fund directly purchases and holds the underlying bonds, providing a transparent and direct investment in the asset class.

The underlying index's methodology incorporates rigorous ESG screening. It begins by excluding issuers involved in controversial activities such as thermal coal production, tobacco, and specific weapons manufacturing. It also removes countries subject to international sanctions or those demonstrating poor performance on critical governance indicators. Following these exclusions, the index re-weights the remaining constituents, increasing the allocation to countries with stronger ESG profiles and reducing it for those with weaker scores. This systematic tilting and exclusion process aims to enhance the portfolio's overall sustainability profile and mitigate long-term risks associated with poor ESG practices.

Investing in this product presents an opportunity for portfolio diversification into an asset class that often exhibits low correlation with developed market bonds. While emerging market debt can offer attractive income potential, it also carries heightened credit and geopolitical risks. The integration of an ESG framework seeks to address some of these inherent risks, appealing to investors who believe that strong sustainability practices can contribute to long-term financial stability. As a capitalising fund, all interest income is reinvested, facilitating the potential for compound growth over a medium to long-term investment horizon.