- The THEAM Quant New Energy Opportunities fund is the first thematic fund that exposes to an index to leverage market-leading research capabilities of BNP Paribas Exane, combined with the equity selection expertise of BNP Paribas Quantitative Investment Strategies (QIS).
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The disciplined framework of the fund seeks to identify companies with high Environmental, Social & Governance (ESG) standards and robust financial fundamentals, which are set to play a key role within the evolving New Energy ecosystem.
BNP Paribas THEAM Quant strategies and BNP Paribas Exane Research have developed their ongoing partnership on thematic product with the launch of the THEAM Quant New Energy Opportunities fund (NEO). This is expected to be the first of a range of solutions addressing the key “meta” investment themes of the future.
The underlying strategy employs BNP Paribas QIS’ dynamic and diversified investment approach, combining artificial intelligence (AI) data processing with industry expert analysis.
The THEAM Quant New Energy Opportunities fund: The opportunity
The THEAM Quant New Energy Opportunities fund entails identifying the key activities, technologies, and capital investments that are most aligned with the Net Zero transition theme. This in-depth fundamental analyst intelligence is then enriched by Big Data technology that allows for companies to be ranked based on their exposure to such activities. Importantly, this approach assesses the long-term financial robustness of selected companies, thus enhancing the overall risk return profile of the fund.
The strategy implements an ambitious commitment and exposure to companies classified as “Sustainable Investment” within the context of the European MIFID II regulation, including those that contribute towards the UN Sustainable Development Goal (SDG) objectives without any adverse impact on other objectives, and follow good governance practices. It simultaneously excludes those that participate in intensive carbon-generating or disputable activities, in breach of the UN Global Compact guidelines, involved in any severe ESG controversies, or have otherwise weak financial fundamentals.
Its allocation universe includes global coverage of liquid companies, divided across three main regions – Europe, North America, and Asia – which are weighted through a quantitative optimisation process and 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.”
Roberto Bartolomei, Head of BNP Paribas Global Markets’ Sales for THEAM Quant funds, said:
“We are pleased to offer clients an opportunity to access the burgeoning investment opportunity within the new energy ecosystem that is developing around global government targets to reach net zero by 2050.
Most notably through this fund, we are able to balance investor demand for diversification with a high-conviction investment approach – enabled not by top-notch independent research input from Exane, but also incorporating Big Data technologies and AI.”
Frank Megel, Director of Research at BNP Paribas Exane, said:
“The strategy employs our analysts’ unique input which is owed to their ‘dual’ knowledge of the New Energy ecosystem in assessing not only the opportunities with existing companies, but also their future trajectory and prospects.
Many key segments of the Net Zero transition are not yet fully developed, so it’s increasingly important to identify precisely and continuously where investment is needed – especially over the next five to ten years.
We work closely with the QIS team to refine the investable thematic index, augmented by additional ESG and risk management layers – all backed up by top-notch independent research. Our ongoing collaboration since 2021 has progressively strengthened BNP Paribas’ thematic research capabilities – providing another layer of proficiency to the growing THEAM Quant offer.”
About BNP Paribas THEAM Quant
The THEAM Quant fund range offers quantitative funds leveraging on over 30 years of experience from Global Markets at BNP Paribas Corporate and Institutional Banking & BNP Paribas Asset Management.
Our range of funds are designed to answer current and forward-looking investors’ needs with various risk/return profiles, from equity funds including factor investing or high conviction stock-picking, to highly flexible multi-asset funds, as well as single or multi risk premia alternatives, defensive and capital efficient investments.
We aim to complement traditional asset management, democratise with hedge fund strategies, provide alternatives to trackers, and bring innovative defensive or risk-managed solutions.
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