BNP Paribas Asset Management

In a world seeking to both preserve biodiversity and decarbonise, natural capital has a lot to offer. And from an investment perspective, it can also act as a potential inflation hedge and portfolio diversifier. Listen to this week's Talking Heads to understand the multi-faceted case for investing in forestry: https://lnkd.in/erDHmGfv

Prevailing market sentiment has cast doubts over the shape of China’s economy. However, electricity consumption, which typically goes hand in hand with economic activity, has been rising throughout 2024. Investors may therefore have over-discounted a negative outlook, and this mispricing could signify an investment opportunity in Chinese stocks. Read more: https://lnkd.in/eDpvkNDd

To date, there is no formalised framework for mapping investment in public equities to the Global Biodiversity Framework (GBF). This, we fear, may hinder investments towards biodiversity-positive outcomes. Consequently, our Environmental Strategies Group’s latest research paper considers two potential frameworks including their own proprietary approach. Read their analysis here: https://lnkd.in/esGvXYsa

We are delighted to have won the Corporate Adviser Awards for the “Best ESG Asset Manager”, an award which recognise excellence and innovation in the delivery of workplace benefits advice, consultancy, products and services. Congratulations to the team involved at firm-wide level to make this happen, namely through the strengths which were highlighted to the judges: -A long-term commitment and a dedicated expertise -A firm-wide sustainability approach -Investing in climate opportunities and supporting the energy transition Read more in our latest Sustainability Report: https://lnkd.in/eKzyj9vZ More information about the 2024 winners: https://lnkd.in/eMreYTjK Jane Ambachtsheer, Roger Miners, Philip Dawes

As a sustainable investor, we are committed to delivering long-term sustainable returns to our clients while contributing - through our influence and our investment decisions - to positive real-world outcomes for our common future. In our latest Sustainability Report, we highlight our progress against these goals and the people, policies and processes that support such achievements. Read more: https://lnkd.in/eKzyj9vZ

BNP Paribas Asset Management continues to implement its strict voting policy during the 2024 Annual General Meeting season. With an opposition rate across all resolutions of 36% (same as in 2023), this season illustrates BNPP AM consistent and ambitious approach, favouring an ongoing constructive dialogue with companies. Some 2024 highlights: - BNPP AM now requires the integration of a climate component in executive compensation - BNPP AM rejected 40% of director appointment resolutions, mainly due to diversity - ESG (Environment, Social and Governance) remains a priority for BNPP AM's voting strategy - BNPP AM remains committed to collaborative engagement Read more about our key figures for 2024 in our press release: https://lnkd.in/ehnfm_kC Jane Ambachtsheer, Michael Herskovich, Nogoye Dieng, Adam Kanzer, Rachel Crossley, Paula Meissirel, Jane Ho, Sifan Wu, Joris Ayemin, Hugo Jalet

The Federal Reserve's dual mandate of preserving growth and protecting jobs gives it a dovish bias, we think. Rather than eliminating inflation at all costs, the Fed could move quickly if required. Such action would likely benefit government bonds in multi-asset portfolios. Learn more in this week's Talking Heads: https://lnkd.in/eUCS3Xn3

The US economy has recently experienced the benign combination of steady growth and slowing inflation; a sort of renewed ‘Goldilocks’. However, the situation is unlikely to last, and we anticipate growth will slow modestly in the quarters ahead, while core inflation remains comparatively high. Read more in our Monthly Market Viewpoint: https://lnkd.in/eGBTMmcS

Fixed income Exchange-Traded Funds (ETFs) can offer investors access to a diversified and liquid portfolio of bonds, often at an attractive cost. New innovations such as fixed maturity ETFs may add to their appeal. Learn more in this week's Talking Heads: https://lnkd.in/eTD_chNd

The US Federal Reserve opted for the status quo at its monetary policy meeting on 11/12 June. What grabbed more attention – at least in eurozone financial markets – was the decision by Emmanuel Macron on 10 June to dissolve the French National Assembly and call for snap legislative elections. Read more: https://lnkd.in/ee6TxADA