BNP Paribas Asset Management (BNPP AM) has entered the fixed maturity ETF market with the launch of a three-strong range, ETF Stream can reveal.
The three ETFs, which hold euro corporate bonds set to expire in 2027, 2029 and 2032 are listed on the Euronext Paris and Deutsche Boerse – with Euronext Milan to follow next week.
Chart 1: BNPP AM’s fixed maturity range
ETF | Average duration (Years) | Average coupon (%) | Yield to maturity (%) | Average credit rating | Maturity date |
|---|---|---|---|---|---|
BNP Paribas Easy Sustainable EUR Corporate Bond December 2027 UCITS ETF (ACE27) | 2.78 | 1.61 | 3.23 | A- | 31/12/2027 |
BNP Paribas Easy Sustainable EUR Corporate Bond December 2029 UCITS ETF (BJLW) | 4.59 | 2.35 | 3.34 | A- | 31/12/2029 |
BNP Paribas Easy Sustainable EUR Corporate Bond December 2032 UCITS ETF (BJLX) | 7.08 | 2.36 | 3.44 | A- | 31/12/2032 |
The three ETFs will track Bloomberg Euro Corporate indices with the relevant maturity, providing exposure to euro-denominated investment grade corporate bonds.
Fixed maturity ETFs have sprung to prominence over the past year and are designed to provide investors with a predictable yield to maturity, allowing them to manage their duration exposure.
The three BNPP AM ETFs are labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Lorraine Sereyjol-Garros (pictured), global head of ETF and index solutions business development, said the new range could help attract both institutional and retail clients.
“Fixed Maturity ETFs can help mitigate reinvestment risk since investors know the duration of their investment and can plan accordingly,” she said.
“Offering a new investment solution that combines fixed maturity with sustainability and low tracking error can differentiate this new range of ETFs from traditional options, potentially attracting both retail and institutional clients.”
BNPP AM joins the likes of Invesco, Amundi and DWS who have all launched fixed maturity ETF range over the past few months.
However, it was BlackRock that first launched fixed maturity ETFs in Europe and hold the two largest products, the iShares iBonds Dec 2028 Term € Corp UCITS ETF (IB28) and iShares iBonds Dec 2026 Term € Corp UCITS ETF (IB26), claiming $993m and $568m assets under management, respectively.
