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BNP Paribas Funds Energy Transition

 

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Important Note:

  • The fund seeks to increase the value of its assets over the medium term by investing primarily in companies engaging in energy transition.
  • The fund has significant exposure to a single sector and is likely to be subject to a greater concentration risk and higher volatility than a more diversified investment.
  • The management company may at its discretion pay dividends out of the capital of the fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the fund’s capital may result in an immediate reduction of the net asset value per share.
  • Investors should not solely rely on this document to make any investment decision. Please refer to the Hong Kong offering document for further information (including the risk factors) about the fund.

 

Contribute to the low-carbon energy transition by investing in companies dedicated to finding solutions that address climate change.

Plant growing in hand pictoSFC-authorized ESG fund^

THE OPPORTUNITY SET

To meet the Paris Accord targets on rising global temperatures and growing energy demand due to expanding and wealthier populations, the energy transition towards a low carbon economy is expected to accelerate in the next decade.

The global energy mix is changing and by 2030, it is estimated that:

  • Low carbon energy will increase to 60%1
  • Fossil fuels will decrease to 40%1

We believe companies participating in the shift towards a low-carbon economy (the energy transition) could offer attractive growth potential and should remain well supported over the long-term given changes below. For instance, huge leaps in technological advancements coupled with changing supply and demand have driven down the price of wind and solar energy, making them more affordable and prevalent.

Through decarbonisation, digitalisation and decentralisation, the energy transition presents a large and diverse investment opportunity set of US$115 trillion.2

Energy_system-cropped

KEY HIGHLIGHTS: BNP PARIBAS FUNDS ENERGY TRANSITION

BNP Paribas Funds Energy Transition invests in all-cap companies globally that seek to take advantage of the energy transition by investing in three areas that, we believe, are central to its success:

Icons_Renewable_Energy_Infrastructure_Efficiency_780x360_Combined

  • Its long-only approach could generate higher returns in exchange for greater volatility.
  • The fund is recognised as a ‘best in energy sector equity’ fund3 and contributes to three Sustainable Development Goals (SDGs).

clean energy  industry-innovation-infrastructure  sustainable-cities

A summary of Energy transition and the $115 trillion opportunity

OUR EXPERTISE

BNP Paribas Funds Energy Transition is co-managed by Ulrik Fugmann and Edward Lees, who have been working together since 2001. They have vast experience in investing and managing businesses in energy, materials, agriculture, and industrials markets. They are supported by two dedicated fundamental research analysts, as well as a quantitative analyst, and have access to the BNP Paribas Asset Management Sustainability Centre, which provides proprietary research and data.

Asset-Asian-Awards-2021 Fund of the year awards 2020
Editor’s Triple Star – Energy Transition Fund4 House Award – Energy Sector Equity (Hong Kong)3

 

 

Sources:

  1. Citi, June 2017
  2. IRENA, International Renewable Energy Agency, World Energy Transitions Outlook, April 2021
  3. Benchmark, Fund of the Year Awards 2020, reflects the performance from 1 July 2019 to 30 June 2020
  4. The Asset, Asset Asian Awards 2021 – Sustainable Investing, reflects the performance from 1 January-31 December 2020

^SFC authorization is not an official recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.


This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. 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. Past performance is not a guide to future performance.