BNP Paribas Environmental Equity Trust seeks to achieve sustainable, above market returns over the longer term by investing globally in companies which are active in the growing resource efficiency and environmental markets.
As we have now seen the first quarter earnings’ season, we can comfortably say two things: companies have started 2021 with very strong momentum in their businesses and that even though the reports were strong, share price reactions to good numbers were fairly muted. In Europe, the first quarter witnessed the highest number of earnings surprises ever recorded, driven by financial and consumer discretionary companies. However, what is more important to us than strong quarterly numbers is that several of our themes and fundamental drivers seem to have been strengthened. One company pointed out in an investor conference that all companies now need to be “the best possible digital self”. Our portfolio is well positioned for that to materialize
What is BNP Paribas Environmental Equity Trust BNP Paribas Environmental Equity Trust is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Other Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The BNP Paribas Environmental Equity Trust has Assets Under Management of 75.16 M with a management fee of 1.1%, a performance fee of 0.00% and a buy/sell spread fee of 0.59%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the BNP Paribas Environmental Equity Trust has returned -0.19% in the last month. The previous three years have returned 4.66% annualised and 14.01% each year since inception, which is when the BNP Paribas Environmental Equity Trust first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since BNP Paribas Environmental Equity Trust first started, the Sharpe ratio is NA with an annualised volatility of 14.01%. The maximum drawdown of the investment product in the last 12 months is -3.97% and -25.02% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The BNP Paribas Environmental Equity Trust has a 12-month excess return when compared to the Foreign Equity - Other Index of -2.71% and -1.59% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. BNP Paribas Environmental Equity Trust has produced Alpha over the Foreign Equity - Other Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Foreign Equity - Other Index category, you can click here for the Peer Investment Report.
What level of diversification will BNP Paribas Environmental Equity Trust provide? BNP Paribas Environmental Equity Trust has a correlation coefficient of 0.88 and a beta of 1.21 when compared to the Foreign Equity - Other Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on BNP Paribas Environmental Equity Trust and its peer investments, you can click here for the Peer Investment Report.
How do I compare the BNP Paribas Environmental Equity Trust with the Developed -World Index? For a full quantitative report on BNP Paribas Environmental Equity Trust compared to the Developed -World Index, you can click here.
Can I sort and compare the BNP Paribas Environmental Equity Trust to do my own analysis? To sort and compare the BNP Paribas Environmental Equity Trust financial metrics, please refer to the table above.
Has the BNP Paribas Environmental Equity Trust been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in BNP Paribas Environmental Equity Trust? If you or your self managed super fund would like to invest in the BNP Paribas Environmental Equity Trust please contact 60 Castlereagh Street, Sydney, NSW 2000 via phone 61292168633 or via email enquiries@au.bnpparibas.com.
How do I get in contact with the BNP Paribas Environmental Equity Trust? If you would like to get in contact with the BNP Paribas Environmental Equity Trust manager, please call 61292168633.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the BNP Paribas Environmental Equity Trust. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - January 31, 2021 Despite a positive start to the year, global equity markets, as measured by the MSCI AC World Index, finished down in USD terms (though slightly up in EUR terms). Positive sentiment prevailed in the first half of the month, fuelled by expectations of normal economic activity, President Biden’s inauguration, and supportive fiscal policy news.
Cyclicals continued to perform well, a weaker dollar drove oil prices higher and rising inflation expectation pushed treasuries above 1%. However, delays to vaccine production and new COVID-19 strains, coupled with nervousness over market volatility resulting from short squeezes led to a sell off towards month end. Economic data generally remains positive, but momentum is levelling off.
Going into the FY 2020 reporting season, results have been encouraging and we have noticed some positive developments in order books and outlook. Although strong recovery in economic data and earnings are needed to keep equity markets performing in the medium term, some caution on valuations in certain sectors is advised. Environmental markets closed higher over January, buoyed in part by Biden’s “Green New Deal”. Performance was led by Energy Efficiency, Food, Agriculture and Forestry, Pollution Control and Environmental Support Services.
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