A sustainable solution to tackle social challenges
The opportunity set
Social bonds – instruments where the proceeds are used to finance projects with positive social outcomes – represent the fastest growing segment of the ‘Green, Social and Sustainability’ (GSS) bond market. In 2020, annual social bonds issuance increased nearly 9-fold to USD 154 billion.1
As businesses and governments the world-over increase their focus on social issues, particularly in the aftermath of the Covid-19 pandemic, we expect this trend to continue, creating exciting opportunities for investors seeking impactful alternatives to traditional fixed income allocations.
BNP Paribas Social Bond highlights
- Thematic investment: direct exposure to social bonds which could offer the traditional benefits of fixed income alongside positive social outcomes such as affordable housing
- Sustainable approach: the fund uses our proprietary methodology and process to select the GSS bonds and responsible issuers best positioned to contribute positively to the theme
- Deep resources: the fund benefits from a robust combination of expertise, with experienced multi-strategy fixed income portfolio managers working closely with our sustainability specialists
Team and expertise
BNP Paribas Social Bond is managed by Arnaud-Guilhem Lamy, who has over 20 years of industry experience. He is supported by a team of over 20 fixed income professionals including portfolio managers, credit analysts and investment specialists.
The team benefits from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group and Macro Research team.
BNP Paribas Asset Management is a pioneer in sustainable investment and today manages over EUR 162 billion in fixed income strategies.2
1 Bloomberg, as of November 2021
2 BNP Paribas Asset Management, as of 31 March 2022
Past performance is not indicative of current or future performance. Performances is calculated net of fees unless otherwise stated.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Following the new Sustainable Finance Disclosure Regulation (SFDR) that came into force on March 10th 2021, BNP Paribas Social Bond is categorised under Article 9.
Under this new regulation, financial entities such as BNP Paribas Asset Management who sell products into the EU are required to classify the products they manufacture or advise into three categories: Products with sustainable investment objective (Article 9), Products promoting environmental or social characteristics (Article 8) and Non-sustainable products (Article 6).
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
For a complete description and definition of risks, please consult the last available prospectus and KIID of the fund. Investors considering subscribing to a fund should read carefully its most recent prospectus and KIID that can be downloaded free of charge from our site.
BNP Paribas Asset Management seeks to integrate environmental, social and governance (“ESG”) factors into all of our portfolios as a means to mitigate certain short, medium and long-term financial risks, identify better long-term investments, and encourage more responsible corporate behaviour. We will never subordinate our client’s interests to unrelated objectives. Certain issuers and industries are excluded from our actively managed portfolios based upon our view of their ESG performance and risk profile. As a result, we may pass up certain opportunities when these excluded issuers or industries are in favour. Due to significant gaps in disclosure regimes around the world, we may need to rely upon voluntary disclosures by issuers, which are often not audited. We therefore may not have consistent access to complete, accurate or comparable information about the ESG performance of our holdings. Please consult the applicable offering document for more information about the specific ESG strategy employed by each investment strategy since a given strategy may not have specific ESG guidelines, and investments are not limited to securities that are ESG compatible.