The AUM for mutual funds and Fund Management Contracts (KPD) of BNP Paribas has touched Rp33.7 trillion by April 2023.
Heaptalk, Jakarta — PT BNP Paribas Asset Management has officially launched its latest Environmental, Social, and Governance (ESG)-based mutual fund named BNP Paribas Indonesia ESG Equity.
By launching this newest investment product, BNP Paribas company aims to encourage investors to reach a more sustainable and inclusive economy while bolstering the government’s intention to attain Sustainable Development Goals (SDG). Concurrently, through this product, this asset management company also intends to boost Asset Under Management (AUM) by up to 10%, approximately Rp35.4 trillion, this year.
As delivered by the Director and Head of Marketing and Product Development of BNP Paribas, Maya Kamdani, “For future development, we are pushing to introduce our newest investment products. Besides educating the market, releasing this investment product is also part of the strategy for our growth,”
According to Maya, the company’s AUM for mutual funds and Fund Management Contracts (KPD) has touched Rp33.7 trillion by April 2023. Around 70% comes from mutual funds, attaining Rp23.5 trillion. Of the mutual funds’ AUM total, about 52% consists of the stock mutual fund, which is equal to Rp12.9 trillion.
Furthermore, the investment selection process used in BNP Paribas Indonesia ESG Equity refers to the company’s global ESG integration principles and guidelines, whereby a team of investment managers will integrate considerations of relevant ESG factors into their investment decision-making.
For this reason, BNP Paribas’s mutual fund product will tend to invest in stocks from issuers who have high awareness and apply good practices in terms of ESG. This selection was made to prevent investors from being exposed to business practices that could potentially involve controversial activities, which could harm the company’s stock performance.
“Through this ESG Equity Mutual Fund, we also invite investors to monitor their investment contribution to the ESG aspect through the two indicators we have issued, namely the ESG Score and the Carbon Footprint of the Mutual Fund. Unlike other ESG products, we present the results of these measurements transparently and periodically, which will be listed in the Fun Fact Sheet issued every month,” The President Director of BNP Paribas, Priyo Santoso, said during the press conference. (05/24)
This ESG Equity product is the fourth mutual fund that carries the theme of sustainability. Previously, the company had several ESG-based mutual funds products, including the BNP Paribas Cakra Syariah USD Mutual Fund, the SRI Kehati BNP Paribas Index Mutual Fund, and the BNP Paribas Greater China Equity Syariah USD Mutual Fund, with a total AUM reached Rp5.58 trillion in March 2023.
ESG Equity mutual fund is available on multiple digital platforms, including Bareksa and Bareksa Priority, IPOT, and Pluang. From now on, this mutual fund will be accessible to more bank and non-bank distribution partners, expecting to reach more investors.
