BNP Paribas THEAM Quant Strategies and BNP Paribas Exane Research have partnered to launch the New Energy Opportunities fund (NEO), a range of solutions intended to address key ‘meta’ investment themes.
The fund’s underlying strategy uses BNP Paribas QIS’ investment approach, which combines data processing conducted by Artificial Intelligence (AI) with industry analysis.
It aims to identify the key activities, technologies and capital investments that align with the Net Zero transition theme. This analysis is further enhanced by Big Data technology that ranks companies based on their exposure to these activities. Notably, the technology assesses the long-term financial robustness of companies, enhancing the overall risk return profile of the fund.
The strategy is exposed to companies classified as ‘Sustainable Investment’ within the context of the European MIFID II regulation, including those that contribute towards the UN Sustainable Development Goals (SDG), and follow good governance practices. It excludes companies that have breached the UN Global Compact guidelines, are involved in ESG controversies or otherwise have weak financial fundamentals.
Further, the fund’s allocation includes a global coverage of liquid companies, divided across three main regions – Europe, North America, and Asia – which are rebalanced on a quarterly basis.
Vincent Berard, head of BNP Paribas global markets’ product strategy for THEAM Quant funds, said: “With growing interest in both sustainable and thematic investing, the strategy is one of the most exciting thematic investment products in the sector on the market today.
“Through the unique blend of Exane’s market-leading research capabilities and QIS’ stock-picking abilities, we are aiming to select the most financially robust and dynamic companies within this meta investment theme – all within a highly disciplined framework.”
