BNP Paribas AM has recently announced the soft close closure of its flagship BNP Paribas Funds Energy Transition. From now on, this fund is closed to new investors. However, existing participants may continue to make contributions.
This Asset Manager French explain that it is a movement of prudence, given the rapid growth that this fund and its assets have experienced this last year. At this time, the Energy Transition Fund exceeds 3,500 million euros under management.
Nevertheless, this is not a definitive closure, as explained by the company, since the option of reopening subscriptions in the near future is not ruled out. In fact, the management team was expanded this past week with the addition of a new member to the team.
Significant and constant growth
As a result of its impressive profitability, BNP Paribas Funds Energy Transition it’s considered the most profitable international investment fund of 2020 with a return of 164.57%. The growth in terms of new participants and assets under management has been just spectacular. This may be the reason why the management company says that the objective of this soft close is to give a break and settle the fund. In November 2020 they announced that they exceeded 1,000 million euros in management. Just two weeks later, the manager had already added another 500 million more, according to Morningstar data.
Generation of ideas
Faced with doubts about the lack of investment ideas that is generated when a fund grows rapidly, the corporation expresses that there is no capacity problem or lack of ideas in the investment universe. In fact, they claim that with more than 1,200 companies on the radar, the opportunities are constantly growing.
For those investors who wish to join this management team, BNP Paribas AM expanded its range of funds in this area with the launch of BNP Paribas Environmental Absolute Return Thematic (EARTH), under environmental criteria. It is therefore a fund with a similar philosophy and the same managers.