BNP Paribas Russia Equity has been under the investment advisory of TKB Investment Partners since its inception in 2007**. TKB Investment Partners is one of the largest Russian-based asset management companies.
Of the three environmental, social and governance (ESG) criteria, the governance element ‘G’ has always been part of the fund investment process. The process was deepened and broadened to include the ‘E’ and ‘S’ factors in 2016.
In spring 2019, the fund investment process succeeded in passing a review by BNP Paribas Asset Management’s Sustainability Centre. In August 2019, ESG factors were included in the investment policy section of the fund prospectus.
100% of the fund’s portfolio is invested in line with the BNP Paribas Asset Management Sustainable Investment Policy. A minimum of 75% of assets are covered by the internal ESG analysis. The average ESG score of the portfolio has to be higher than that of its investment universe.
At the beginning of 2021, BNP Paribas Asset Management classified the fund as qualifying for Article 8 of the Sustainable Finance Disclosure Regulation (SFDR). Funds in this category promote environmental and/or social characteristics and make sure that the companies they invest in have strong corporate governance qualities.
With assets of approximately USD 1 billion as at 28 September 2021, BNP Paribas Russia Equity is the largest Russia equity fund in the world qualifying for SFDR article 8.
“On the base of the analysis done by BNP Paribas Asset Management’s Sustainability Centre, we engaged with Severstal regarding its energy coal production and consumption. This engagement was one of the factors which Severstal took into account in deciding to stop producing energy coal in the first quarter of 2022 and switch its power plants in Vorkuta to gas. This should result in reducing CO2 emissions by 750 000 tonnes per year,” commented Vladimir Tsuprov, CIO, TKB Investment Partners.
* Sources: Bloomberg, TKB Investment Partners, 28 September 2021
** At that time, the fund’s name was FLF Equity Russia
ESG – environmental, social and governance
The above-mentioned securities are for illustrative purpose only, are not intended as solicitation of the purchase of such securities, and does not constitute any investment advice or recommendation.
BNP Paribas Russia Equity is a Sub-Fund of the BNP Paribas Funds, an UCITS V open-ended investment company incorporated under the Luxembourg law.
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.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
TKB Investment Partners (JSC) is the source for all data in this document as at end of January 2021, unless otherwise specified.
This material is issued and has been prepared by TKB Investment Partners (JSC).
This material is produced for information purposes only and does not constitute:
1. An offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
2. Any investment advice.
Opinions included in this material constitute the judgment of TKB Investment Partners (JSC) at the time specified and may be subject to change without notice. TKB Investment Partners (JSC) is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the Financial Instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for a client or prospective client’s investment portfolio.
Given the economic and market risks, there can be no assurance that any investment strategy or strategies mentioned herein will achieve its/their investment objectives.
This document is not a personalized investment recommendation. Any financial instruments or other transactions mentioned in this communication may misfit your investment profile. It is upon the investor to determine whether a financial instrument or a transaction fits his investment objectives, investment horizon or risk tolerance. TKB Investment Partners (JSC) shall not be liable for any possible losses incurred by an investor having invested into the financial instruments mentioned herein.
Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the financial instruments may have a significant effect on the results portrayed in this material. The value of an investment account may decline as well as rise.
Investors may not get back the amount they originally invested.
The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes.
TKB Investment Partners (JSC) is the legal entity registered under laws of Russian Federation with principal state registration number (ORGN) 1027809213596, having its registered address at: 69/71, lit. A, Marata Street, Saint Petersburg, 191119, Russian Federation, holding the license issued by FFMS of Russia to carry out asset management of mutual funds & non-state pension funds Nr. 21-000-1-00069 as of 17 of June 2002 (validity of license – unlimited), and the license of FFMS of Russia of professional securities market participant to carry out the trust management activity Nr.078-09042-001000 as of 11 April 2006 (validity of license – unlimited). Phone: +7 821 332-7332, fax: (812) 346-6557.