BNPP ESG ENHANCED WORLD UCITS ETF
| Issuer: BNP Paribas Asset Management |
| Asset Class: Equity |
| TER: 23bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 10 Jul 2025 |
| Ticker: AWDS |
| ISIN: IE000629MKR4 |
This investment product provides exposure to large and mid-capitalization companies across developed markets globally, with a distinct focus on integrating environmental, social, and governance (ESG) criteria. It aims to replicate the performance of the MSCI World ESG Enhanced Focus CTB Index, which systematically increases its allocation towards companies with robust ESG profiles. The methodology also adheres to the requirements of the EU Climate Transition Benchmark (CTB), significantly reducing the portfolio's carbon footprint. Consequently, companies involved in controversial business activities, such as thermal coal, tobacco, and certain types of weapons, are excluded from the investment universe.
The underlying index employs a sophisticated optimization process designed to achieve two primary goals: maximizing the portfolio's overall ESG score and aligning with a 1.5°C global warming scenario by reducing greenhouse gas intensity. This dual-mandate approach provides investors with a core equity holding that not only offers broad diversification across sectors and developed economies but also incorporates stringent sustainability and climate-conscious principles. The portfolio is physically replicated, meaning it directly holds the constituent securities of the index, offering transparency and a direct stake in the underlying companies.
Designed for investors with a long-term horizon seeking capital appreciation, this product is structured as a capitalising, or accumulating, vehicle. This means that any dividends paid by the constituent companies are automatically reinvested back into the portfolio, which can accelerate compound growth over time. It represents a suitable core building block for investors who wish to align their financial objectives with positive environmental and social impact, without forgoing the benefits of a diversified global equity strategy.
