New Listing

BNP Paribas AM unveils Paris-Aligned global ETF

PAACU is the fourth ETF on the firm’s ICAV

Jamie Gordon

Lorraine Sereyjol-Garros new

BNP Paribas Asset Management has launched a Paris-aligned all-world ETF, the fourth product on its Irish platform, ETF Stream can reveal.

The BNP Paribas Easy MSCI ACWI SRI S-Series PAB 5% Capped UCITS ETF (PAACU) is listed on Euronext Paris and Borsa Italiana with a total expense ratio (TER) of 0.20%. The ETF will list on SIX Swiss and Deutsche Boerse on 23 May.

PAACU physically tracks the MSCI ACWI SRI S-Series PAB 5% Capped index to offer exposure to developed and emerging market equities complying with ESG criteria.

The index complies with Paris-Aligned Benchmark (PAB) criteria of reducing carbon intensity by at least 50% versus the parent benchmark as well as an annual decarbonisation target of 7%.

PAACU excludes fossil fuels as well as 75% of the market cap of the vanilla MSCI ACWI.

The ETF has a 35% minimum sustainability threshold and aims to keep its tracking error below 1%.

It is categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) and complies with several single country labelling regimes including the French Investissment Socialement Responsible (ISR).

PAACU is the fourth ETF to be domiciled on BNPP AM’s Irish collective asset management vehicle (ICAV) after the BNP Paribas Easy S&P 500 ESG UCITS ETF (SPEEU) became the platform’s debut strategy last June.

Lorraine Sereyjol-Garros, global head of development for ETFs and index funds at BNPP AM, commented: “We observe strong interest from clients for SRI PAB ETFs and are proud to expand our range, particularly within our Irish ICAV.

“Between our already existing MSCI SRI World PAB ETF and this new ETF, clients will have access to both developed and emerging equity markets.”

The launch extends the firm’s PAB range to seven ETFs which has amassed $7.1bn since debuting in 2021.

It comes after BNPP AM entered the active ETF market with a double launch in February, ETF Stream revealed.

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