BNP Paribas Asset Management has launched the Sustainable Asian Cities Bond fund.
The thematic fixed income fund offers investors exposure to sustainable urbanisation in Asia with a focus on Asia ex-Japan bonds. It is market classified as SFDR Article 9. The fund is part of BNPP AM’s range of sustainable thematic solutions with the following approach to portfolio selection:
1. Sustainable labelled bonds where the potential use of proceeds is naturally aligned with aspects of sustainable cities (e.g. clean transport, renewable energy or healthcare infrastructure), leveraging BNPP AM’s proprietary approach to assessing thematic bonds.
2. Bonds from issuers involved in activities that contribute to aspects of sustainable cities – screening issuers who derive a minimum of 20% of their revenue from activities that are directly contributing to smart grid technology products or enablers of sustainable Asian cities, such as real estate developers; both subject to filtering for sound ESG practices.
Jean-Charles Sambor, Head of Emerging Market Fixed Income at BNPP AM and Portfolio Manager of the BNP Paribas Sustainable Asian Cities fund, comments: “The BNP Paribas Sustainable Asian Cities fund is a continuation of BNPP AM’s success within sustainable thematic solutions and the launch is in response to client demand. We believe that the need for infrastructure development capital in Asia to make cities more sustainable is secular and long-term, taking place over several decades, rather than being a passing fad. Our actively-managed thematic approach enables us to build a dynamic fixed income portfolio based on a two-pronged approach that will allow us to generate consistent returns relative to broader Asian bond markets. This in turn allows us to meet the expectations of our clients who are looking to generate a positive impact on tomorrow’s society while generating long-term value.”