By listing the first ETF series on Piazza Affari, BNP Paribas Asset Management (BNPP AM) confirms its ambition to triple its ETF assets under management in Europe by 2020, looking to benefit from the potential of the Italian market.
BNP Paribas Asset Management has a strong focus on the development of its indexed management business, with the initial listing of 13 ETFs on Borsa Italiana, to be followed by further moves to widen the range during the year.
“BNPP AM has strong index tracking capabilities, with 30 years’ experience. We have managed ETFs since 2005 and have built considerable expertise in this area”, says Marco Barbaro, CEO of BNPP IP SGR. “Italy is one of BNPP AM’s core markets, with a strong local presence, and we intend to support our institutional and retail clients through an extensive offering, ranging from active solutions to indexed products such as ETFs”, he adds.
The use of these instruments has increased and their assets have grown significantly, rising by almost 20% annually over the past 10 years, according to ETFGI (as at April 2017). BNPP AM manages EUR 17 billion of indexed portfolios as at end of March and has a strong ETF platform, with 10 senior managers having more than 15 years of expertise in this area. BNPP AM was also one of the first companies to launch ETFs on the listed real estate market and the MSCI Ex Controversial Weapons indexes.
“The ETF market is the fastest growing area of the European asset management industry and we aim to be active participants in this growth. As a notably dynamic market, Italy will play a prominent role in our plan to triple our assets under management by 2020 and to be among the top 10 European providers”, says Isabelle Bourcier, Head of ETF & Indexed Fund Activities at BNPP AM.
In support of this objective, Sabrina Principi was appointed Head of ETF & Indexed Fund Activities for Italy in February and further team members will be added in order to take advantage of the considerable increase in ETFs in investor portfolios, including pension funds, insurance companies, private banks and asset management companies.
“We decided to list 13 ETFs from our broader range on Borsa Italiana, taking into account relevant market themes and following ongoing conversations with our clients”, says Sabrina Principi, Head of ETF & Indexed Fund Activities in Italy.
– Six of these ETFs, currently not covered on the Italian market, form part of the “Essential” category and replicate MSCI ex Controversial Weapons indexes, since BNPP AM believes that ethical thematics will increasingly form the basis of client investment choices.
– Five other ETFs are in the particularly “hot” sector of “Smart Beta”. They are the result of our strategic innovation process and exploit a trend which captures outperformance through the exposure to factors such as value, quality, momentum, and low volatility.
– The last two ETFs are part of the “Thematic” segment and provide exposure to listed real estate and infrastructure investment markets.
The investments in the funds 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 outlay, the funds described being at risk of capital loss. For a Complete description and definition of risks, please consult the last available prospectus and KIID of the funds. 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 www.bnpparibas-am.com
About BNP Paribas Asset Management BNP Paribas Asset Management is the investment management arm of BNP Paribas, one of the world’s major financial institutions. Managing and advising EUR 566 billion in assets as at 30 June 2017, BNP Paribas Asset Management offers a comprehensive range of active, passive and quantitative investment solutions covering a broad spectrum of asset classes and regions. With more than 700 investment professionals and around 600 client servicing specialists, BNP Paribas Asset Management serves individual, corporate and institutional investors in 73 countries around the world. Since 2002, BNP Paribas Asset Management has been a major player in sustainable and responsible investing.