How are you innovating as an ETF provider to meet changing investor needs? What are key areas of focus for the group?
Expanding our ETF offering has become a strategic priority for BNP Paribas Asset Management. In today's competitive landscape, innovation is not a luxury, it's a necessity to deliver meaningful value to our clients. Our perspective is that innovation does not need to be complex. On the contrary, we have been focused on simple, transparent solutions that meet our investors' needs. Over the last few months:
· We expanded our coverage across asset classes, market segments and created specific shades of ESG with a simple idea, minimising tracking error for a given sustainability objective. Our Min-TE and ESG-enhanced ranges are specifically designed to help clients navigate the fast-evolving sustainability landscape
· We enlarged our thematic offering with a Defense ETF, aligning with our Group commitment to support the European defense industry and complementing our existing range
· We launched a Euro Overnight strategy to meet our clients' needs for high performing cash equivalent solutions
Our goal is to stay ahead by continuing to anticipate regulatory and market trends and delivering innovative, client-focused fund offering.
Where are you seeing opportunities for clients in terms of individual ETFs or certain types of strategies in the current market environment, and how could they work in clients' wider portfolios?
At the beginning of the year, the ETF market appeared poised to continue its 2024 trajectory. However, we've observed notable shifts in client preferences in 2025.
Firstly, Europe has garnered significant attention from clients, with substantial inflows. In a volatile macro and political environment, we anticipate Europe's continued prominence. To capitalise on this trend, we recommend exploring our Min TE and ESG-enhanced ranges, which offer European, EMU exposures with diverse sustainability objectives.
Secondly, investors are adjusting their duration to align with the macro environment. Over the years, we've developed a comprehensive range of Fixed Income strategies spanning various maturity buckets, including short and ultrashort products.
Lastly, with the rise of retail clients, we believe offering simple products remains crucial. Our aim is to construct a comprehensive range of ETFs that serve as building blocks for investors' allocations, adapting to market evolution.
What would you like to see now from the industry to support the evolution of ETFs in the future?
To support the continued evolution of ETFs, we believe the industry would benefit from more measured and consistent regulatory updates—particularly around ESG. The recent wave of changes has forced many asset managers to overhaul product ranges and marketing strategies, often creating confusion for clients and disrupting long-term positioning.
We also strongly support efforts to reduce fragmentation in the European ETF market. Streamlining aspects such as multi-listings and post-trade settlement mechanisms would significantly enhance market efficiency.
At the same time, we welcome initiatives that improve access for individual investors—especially through digital platforms—as this segment is becoming increasingly important. Education will also be key; as ETFs grow more sophisticated, particularly in ESG and thematic areas, investors need the right tools and knowledge to make informed decisions.
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