The fund provides exposure to a basket of European Equities with high ESG standards.
The THEAM Quant – Equity Europe Climate Care fund seeks to provide capital growth over the medium term, linked to the performance of European equities with strong Environmental, Social and Governance (ESG) standards and selected on the basis of their carbon footprint and energy transition strategy. The fund adheres to the EU Paris-Aligned Benchmark standards and implements a quantitative investment strategy via the BNP Paribas Equity Europe Climate Care Paris-aligned NTR index.
A low-enough carbon footprint alone is not enough to combat climate change; the fund strategy does not select companies solely based on their current carbon emissions, but also on the robustness of their energy transition strategy.
- The fund’s allocation algorithm rebalances the portfolio quarterly by assigning optimal weights to each share from a universe of European equities.
- The final portfolio aims to:
- Have a carbon footprint reduced by at least 50% compared to the Benchmark Portfolio;
- Maximise its Moody’s ESG Solutions energy transition score;
- Control risk versus the STOXX Europe 600 with a maximum tracking error of 5%.
The strategy evolved in December 2021, to now follow the Paris-Aligned Benchmark (PAB) objectives. In line with the Paris-Agreement, PAB is the most ambitious of climate benchmarks proposed by the European Commission – adhering to these standards implies a more selective portfolio, hereby preventing greenwashing whilst aiding investors in their pursuit to mitigate climate risk.