BNP Paribas Asset Management continues to revamp its Luxembourg-domiciled Parvest fund range. The French manager announced the merger of the Parvest Equity World Materials fund (€67.85m of assets under management as of 1 March 2018) into the Parvest Energy Innovators fund (€167m of AUM as of 1 March 2018).
The merger will occur on 23 March 2018. Another Parvest strategy, Equity World Utilities (€70.44m of AUM as of 1 March 2018) will be dissolved into the Parvest Finance Innovators fund (€30.9m of AUM as at 1 March 2018) at the same date.
In a shareholder notice, the manager argued the investment universes of the merging sub-funds, managed by Pamela Woo and Pamela Hegarty respectively, are no longer relevant for generating over-performance. In addition, BNPP AM said that it now believes in innovative companies and sectors and that merging shareholders will have better returns prospects through this focus on innovation.
Both Parvest Energy Innovators and Parvest Finance Innovators funds are run by Geoffry Dailey.
The former invests at least 75% of its assets in equities issued by companies worldwide which enable and benefit from financial innovation such as payments
technology, digital financials services, mobile banking and blockchain.
The latter focuses on stocks globally issued by companies innovating to help meet the future energy requirements of a developing world. In BNPP AM’s view, the energy innovation themes include, among others, reduction in the cost of traditional resource extraction, enhancement of the ultimate recoverability of traditional resources, competitiveness and adoption of renewable and alternative energy sources, and reduction in the structural demand for energy.