BNP Paribas Easy ESG Enhanced Euro Corporate Bond
| Issuer: BNP Paribas Asset Management |
| Asset Class: Fixed Income |
| TER: 20bps |
| Trading Currency: EUR |
| Pays Income: False |
| Listing Date: 08 Oct 2025 |
| Ticker: ACED |
| ISIN: LU2697596745 |
This fund offers a core fixed-income solution for investors aiming to integrate robust sustainability criteria into their portfolios. It is designed to provide exposure to the European investment-grade corporate bond market by tracking an ESG-enhanced benchmark. The portfolio consists of fixed-rate, euro-denominated bonds from issuers that meet stringent environmental, social, and governance standards. By focusing on investment-grade securities, the strategy seeks to deliver stable income and capital preservation, making it a suitable component for investors who prioritize both financial returns and responsible investing principles.
The underlying index employs a sophisticated, multi-layered ESG methodology. It starts by applying a set of negative screens, excluding companies involved in controversial sectors like tobacco, thermal coal, and controversial weapons, as well as those violating the UN Global Compact principles. Following these exclusions, the remaining constituents are evaluated and re-weighted based on their ESG scores. Companies demonstrating stronger sustainability practices are overweighted, while those with weaker ESG profiles are underweighted. This 'enhanced' approach aims to significantly improve the portfolio's overall ESG profile and reduce its carbon intensity compared to a traditional, non-screened corporate bond universe.
Ultimately, this investment vehicle is tailored for those looking to build a diversified, socially responsible portfolio. It provides a straightforward way to access a basket of high-quality European corporate debt while actively supporting companies with superior ESG credentials. The fund serves as an effective tool for decarbonizing a fixed-income allocation and aligning capital with sustainable outcomes, without straying from the fundamental characteristics of the broad investment-grade corporate bond market.
