HEAD-TO-HEAD: BNP Paribas versus Pictet

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Ronald van Genderen, Morningstar

INTRODUCTION

The popularity of environmental-themed funds has risen concurrently with the enthusiasm – both genuine and marketing-inspired – for sustainable and responsible investing, and all the variations generated within the ESG zeitgeist.

In Europe, for example, more than a quarter of the 166 sustainable offerings launched last year had an environmental flavour with products aligned with the climate targets set out in the Paris Agreement, according to data from Morningstar Direct.

Concerns about climate change and demands for reductions in carbon emissions have been the inspiration for a focus on a wide range of industrial sectors that could reshape economies and societies, and, so some investors believe, could spawn companies that will transform and then dominate the new landscape.

As Harry Thomas, a portfolio manager at TT International said at a recent FSA webinar: “All aspects of the global the economy are going to be touched by these transition companies, [affecting] the way we make energy, food, clothes and buildings.”

At the same event, John Cappetta, head of private banking for Asia advisory at Ninety One, highlighted the potential for renewable energy, electrification and resource efficiency.

Against this background, FSA asked Ronald van Genderen, analyst at Morningstar, to select two environmental themed equity products for comparison: the BNP Paribas Global Environmental Classic Fund and the Pictet Global Environmental Opportunities Fund.

Source: FE Fundinfo, Morningstar. (Data in US dollars, 16 April 2021)

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