Assets Under Management AUM

BNP Paribas AM moves the CAC 40 ETF to the ESG index

Monitoring of the CAC 40 ESG index

BNP Paribas Asset Management (BNPP AM) has changed the index of its French equity ETF to an index that tracks environmental, social and governance (ESG) measures.

The BNP Paribas Easy CAC 40 UCITS ETF (E40) will now replicate the CAC 40 ESG index created by Euronext in partnership with Vigeo Eiris, a Moody’s subsidiary, in March.

As a result, E40, which currently houses $ 198 million in assets under management (AUM), will change its name to become BNP Paribas Easy CAC 40 ESG UCITS ETF and remain on the same ticker.

The Total Expense Ratio (TER) will remain at 0.25%.

Based on the CAC Large 60 index, the index identifies the 40 best-rated French companies from an ESG point of view in accordance with the requirements of the French government’s socially responsible investment label.

It also excludes companies involved in coal, controversial weapons, tobacco or which are in conflict with the principles of the United Nations Global Compact.

The index rebalances quarterly and each issuer is capped at 10%.

Stéphane Boujnah, CEO and Chairman of the Management Board of Euronext, said: “The launch of this ETF replicating the CAC 40 ESG reflects the growing interest of investors in ESG criteria.

BNPP AM first declared its interest in switching to the index in March, alongside Lyxor, and the move makes it the first ETF to track the index.

Last month it was revealed that French rival Amundi will be launching an ETF that tracks the index, but the strategy has yet to be listed.

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