A long-short approach to investing in environmental markets
Climate change and rising populations are causing supply and demand imbalances for energy, food, water and raw materials, making change necessary in our consumption habits over the next decades.
We believe companies participating in the shift towards sustainable environmental practices could offer attractive growth potential and should remain well supported over the long-term by public policy, improving technology, consumer demand and investor preferences. In contrast, companies that are less prepared, with business models experiencing transition risk, stranded assets or inferior technologies, risk losing significant value over time.
- THEMATIC INVESTMENT
The fund seeks to invest in companies that facilitate positive environmental change while shorting those suffering from transition risk
- GLOBAL MULTI-SECTOR APPROACH
The fund can invest across style factors, geographies, sectors, technologies and market capitalisations, providing enhanced portfolio diversification and opportunity capture
- EXPERIENCED TEAM
The team’s co-heads have been working together for over 20 years across public and private markets. They have extensive fundamental, thematic and quantitative investment experience.
Team and expertise
EARTH is managed by Ulrik Fugmann, 21 years of industry experience, and Edward Lees, 26 years of industry experience. Together they head our Environmental Strategies Group that includes portfolio managers, research analysts, quantitative 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.
Past performance is not indicative of current or future performance. Performances is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
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 Environmental Absolute Return Thematic Equity 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.