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FOR PROFESSIONAL INVESTORS
Parvest Green Tigers Taking part in Asia’s green revolution
Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Contents
Sustainable Thematics in Emerging Asia
Investment Process
Fund Performance and profile
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
SUSTAINABLE THEMATICS IN EMERGING ASIA
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Airpocalypse
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Waterpocalypsee
STR/AFP/Gettyty
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I 6
Qiu Bo/Greenpeace
Landocalypsee
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Air Pollution Action Plans steps up in the political agenda
Source: BNP Paribas Exane
“Growth first” “Quality first” Only “the strictest system and most tightknit law enforcement “ can
ensure ecological progress
Jiang Zemin Hu Jintao Xi Jinping
LI Kegiang
declares war
on pollution
!!!
Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Chinese Government 2013- 2017 Action Plan USD 294 bn investments approx. 3% Chinese GDP
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Source: Xinhua, Exane BNP Paribas
Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Environmental strategy research
Sustainable transport
Clean transport
Clean transportation
technologies
Renewable and
transitional energy
Biofuels (2nd generation)
Conventional gas
Geothermal energy
Hydropower
Solar energy
Wind energy
Investable universe 6 sustainable strategies
Energy efficiency
Building energy efficiency
Industrial energy efficiency
LED technology
Power energy efficiency
Sustainable agriculture
Sustainable production
Agricultural productivity
Environmental support
services
Environmental services,
auditing and consulting
Waste management
Recycling & reuse
Water
Water infrastructure
Water treatment
Water-related technologies
Our sustainability research team analyses the
exposure of individual companies to six
sustainable strategies
Minimum 20% exposure of turnover for a
company to be included in the fund’s investable
universe
Companies located across a range of
geographies and sectors
Companies are screened for environment,
social and governance controversies
ESG scoring to exclude companies with bad
ESG practices from the universe
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment Process
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The Green Tigers Handbook
The Green Tigers Handbook outlines the environmental strategies and
technologies in detail as well as potential pitfalls
Sustainability and Economic analysis for each theme and technology included in Green Tigers, to ensure relevancy
Analysis of the thematic value chain, in order to ensure that we are targeting the parts with more environmental relevancy and discard the parts that might be hazardous
Potential ESG risks and controversies analysis ensure that the companies in our universe are consistent with the environmental focus of our fund
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
INVESTMENT PROCESS
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment process Overview: from the investment universe to the portfolio
portfolio
manager
sustainability
research team focus
list
A fully integrated approach with a sound sustainability base
Asian
stocks
SRI
universe Filt
ers Green
Tigers
stock
selection
Environmental foundation Financial expertise
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment process
Thematic SRI screening results in a universe of companies with leading qualities
Asian
Stocks
SRI
Universe
All companies are thoroughly analysed to ensure that they have not been involved in controversies due to poor practices so that they comply with the UN Global Compact and BNPP IP sector policies
An internal handbook outlines the activities and business models that are investable for this strategy and potential controversies that may arise in any given sector
Companies must have coherent activities and a minimum 20% of turnover in the identified themes or 40% if they are suppliers in the value chain
controversy screen
Part of the Solution
thematic analysis
THEMATIC INVESTMENT UNIVERSE
OUT IN
Companies not eligible for
investment
All companies are evaluated according to an ESG scoring process to ensure that they are actively involved in environmental, social and governance practices
Each company will be scored for its performance on environmental practices; the scoring ranges from 0 (worst) to 10 (best). Companies that score 0 are excluded from the investment universe.
ESG scoring
1st step: sustainability research - thematic process
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Green Tigers recognised for its environmental attributes
Green Tigers sustainability features have not passed unnoticed
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Novethic LuxFlag
The Novethic Green Fund Label is awarded to funds that finance companies who create solutions to
environmental problems. It provides investors with a guarantee of the quality and the transparency of the
environmental aspects of labelled funds, and of their contribution to sustainable development. Further
information on www.novethic.com
The Luxflag Environment label is for funds that are at least 75% invested in environmental companies, and
which generate strong performance in the management of their environmental, social and governance
responsibilities.
Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment process 2nd step: idea generation
focus
list
Our focus list allows us to concentrate in the most attractive sectors
SRI
universe
APAC equities team advisory
Broker research
Company meetings
ESG analysts liaison
Sector follow-up
Sector database
Target price setting
Stock recommendations
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Developed with the BNPP IP Asia Pacific equities team in Hong Kong
They help us find new opportunities and keep us updated on events affecting our holdings and strongest convictions
Incorporated their local expertise into our analysis for performance generation
Unparalleled access to brokers research and analysts
Constant interaction with our SRI research team
Focus on target price setting and high convictions
Sector database maintenance, to follow individual names and sector bias
Stock recommendations integrate short, medium and long-term criteria
Asia-Pacific equities team
advisory
buy discipline
idea generation
stock
selection
The first step is to create a focus list based on global macroeconomic conditions, regional and sector trends and country policy.
The focus list allows us to target the most attractive sectors and ensures that we are well positioned to make the most of the current conditions
focus list
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Ho
ng
Ko
ng
Advisory
Par
is
Portfolio management
Paris–Hong Kong link
Universe definition
Portfolio construction
Risk management
Final investment decisions
First-hand knowledge of the company
Regular commentaries and updates
Local knowledge of markets
Challenge existing positions
Propose investment ideas
Green Tigers leverages BNPP IP’s global platform for improved
performance
Regular calls between the SRI team in Paris and the Asia-Pacific equities team in Hong Kong ensure that the team in
Europe is up-to-date with local events and views
2nd step: idea generation Investment process
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment process 3rd step: portfolio management
portfolio
managers
Portfolio managers are the final piece of the puzzle
Idea generation
Country/sector deviations
Risk management tools
Portfolio construction
Risk management/sell discipline
Client service
Performance
portfolio management
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portfolios
Portfolio managers are responsible for managing the risk in their portfolios
A variety of tools is used to manage risk, from standard measures such as the tracking error to proprietary tools such as Opera
Our strict sell discipline ensures that the portfolio is composed by high-conviction calls
Target price setting and risk/return profiles are constantly monitored
Extra-financial considerations play a role
Portfolio construction takes into account the extra-financial analysis and the fund managers' high-conviction calls
Portfolio managers also take into account sector and issue limits
risk management
sell discipline
portfolio construction
stock
selection
performance The whole process allows portfolio managers to deliver performance with sound sustainability credentials
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
FUND PERFORMANCE AND PROFILE
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Strong performance since September 2012 vs. MSCI Asia Pacific ex Japan
Source: Clientperf, BNPP IP, as at the end of April 2015
Past performance or achievement is not indicative of current or future performance For information, net performance (Classic share) in euros: 16.43 % in 2014 ; 10.69 % in 2013 : 13.26 % in 2012 ; -25.12 % in 2011 ; 14.26% in 2010.
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
A major exposure to Greater China
Geographical distribution
Green Tigers MSCI Asia ex Japan
Source : BNPP IP , Bloomberg , data as the end of April 2015
Custom benchmark
China25%
Hong Kong31%
India5%
Indonesia0%
Korea17%
Philippines1%
Singapore0.25
Taiwan21%
Thailand0%
China23%
Hong Kong19%
India8%Indonesia
3%
Korea18%
Malaysia4%
Philippines1%
Singapore6%
Taiwan15%
Thailand3%
China23%
Hong Kong30%
India4%
Indonesia0%
Korea16%
Malaysia0%
Philippines2%
Singapore0%
Taiwan24%
Thailand1%
Also offering a diversified exposure to Asia emerging markets
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
The six sustainable strategies in the portfolio Strategy distribution
Green Tigers Custom benchmark
Source : BNPP IP, Bloomberg , data as at the end of April 2015
Renewable &
Transitional Energy
28%
Sustainable Transport
24%
Water11%
Energy Efficiency
35%
Env Support Services
2%
Sustainable Agri0%
Renewable &
Transitional Energy
28%
Sustainable Transport
22%Water11%
Energy Efficiency
37%
Env Support Services
1%
Sustainable Agri1%
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Holdings Sector and market cap distribution
Sector distribution Market cap
Source : BNPP IP, Bloomberg , data as at the end of April 2015
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Green Tigers Custom Benchmark MSCI Asia ex Japan
Mkt Cap in EUR Green Tigers Custom Index MSCI
Higher than 100.000 M 4.7% 5.1% 22.8%
Between 50.000 M and 100.000 M 4.4% 4.1% 6.6%
Between 10.000 M and 50.000 M 20.2% 21.7% 42.0%
Between 5.000 M and 10.000 M 36.2% 36.3% 16.1%
Between 2.500 M and 5.000 M 12.1% 12.4% 9.2%
Between 1.000 M and 2.500 M 12.9% 12.8% 3.1%
Below 1.000 M 7.1% 7.5% 0.1%
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
CONCLUSION
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Parvest Green Tigers, a specific and unique proposition
Summary
Emerging markets
Drivers of global growth
Demographics
Innovation
Diversification strategy
Environmental focus Green Tigers
Close ties between fund managers
and extra-financial analysts
Strong environmental focus
Ability to identify better investment
opportunities
Tight risk management with a
proprietary index
Performance
Severe environmental degradation
Environment-led policy support
Need to increase living standards
and quality
Increasing public awareness
Strong growth and outlook for the
sector
Environmental challenges provide
investment opportunities
Parvest Green Tigers is a specific and unique proposition with a sound
process designed to maximise returns by focusing on being part of the
solution
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
APPENDICES
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
BIOS
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Alvaro Ruiz-Navajas Portfolio manager
Since September 2012: portfolio manager of Parvest Green Tigers (BNP Paribas Asset Management, Paris)
Since 2011: portfolio manager and buyside analyst, Global Natural Resources (BNP Paribas Asset Management, Paris)
2009-2011: buy-side analyst, Global Equities (BNP Paribas Asset Management, Frankfurt)
2007-2009: buy-side analyst, Global Equities (Fortis Investments, Frankfurt)
2001-2002: consultant, Financial & Microfinance Institutions Latin America (German Technical Cooperation Agency, Bolivia)
2007: Ph.D. Economics, University of Manchester
2003: M.Sc. in Development Economics, University of Manchester
Professional experience
Education
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Pierre-Marie Piquet CIO SRI equities
2015: CIO SRI equities
2011-2014: head of SRI European equity and senior portfolio manager SRI euro/European equities (BNP Paribas Asset Management, Paris)
2009-10: portfolio manager SRI “best-in-class" and asset allocation, "European Equities – Sectors & Thematics" (BNP Paribas Asset Management, Paris)
2006-08: portfolio manager and buy-side analyst, Cross Asset Arbitrage, CooperNeff Alternative Management (BNPP's hedge fund, Paris)
2004-06: head of convertible bond research (Calyon, Paris)
2001-04: sell-side analyst, convertible bonds, (Crédit Lyonnais Securities, Paris)
1999-2001: sell-side analyst, convertible bonds, derivatives research Department (Oddo Securities, Paris)
1998-99: fund manager assistant, European equities (Quilvest Gestion Privée, Paris)
2002: Certified International Investment Analyst ("CIIA") from the French Society of Financial Analysts ("Société Française Analystes Financiers; SFAF")
Professional experience
Education
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Helena Viñes Fiestas Head of sustainability research
Since Sept. 2013: head of sustainability research (BNP Paribas Investment Partners, Paris)
May 2011 – Sept. 2013: co-head of SRI research and head of sustainable thematic research (BNP Paribas Investment Partners, Paris),
2005-11: policy adviser, Private Sector Advocacy Team (OXFAM, London)
2004-05: SRI analyst (CoreRatings, London)
2003-04: researcher UK Sustainable Investment and Finance Group (UKSIF, London)
2002-03: part-time SRI analyst (F&C Investment, London) and Consultant (Global Witness, London)
2002: MSc in Development Studies (faculty of economics) from London School of Economics
1999: Masters in Latin American Economics and a BA in Economics from the University of Barcelona
Professional experience
Education
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
BNP Paribas IP Asia Pacific equities Advisory with regional expertise
Arthur Kwong, CFA Head of Asia Pacific equities ► 15 years of investment experience, including 14 years at
BNPP IP*
► Lead portfolio manager
► General team management
► All countries in Asia Pacific
► Based in Hong Kong
Sam Lee, CFA Investment analyst ► 9 years of investment experience
► Joined BNPP IP* in 2006
► Responsible for quantitative research, style-based analysis and
portfolio construction
► Focus on Hong Kong and China
► Based in Hong Kong
Felix Lam, CFA Portfolio manager & senior investment analyst ► 9 years of investment experience
► Joined BNPP IP* in 2006
► Primary responsibility is investment process and fundamental
equity research
► Focus on Australia and India
► Based in Hong Kong
Anthony Ho Investment analyst ► 10 years of investment experience
► Joined BNPP IP* in 2005
► Fundamental research
► Focus on Japan, Korea and Taiwan
► Based in Hong Kong
Hue Lu Investment specialist ► 11 years experience in financial services.
► Joined BNPP IP in 2014
► Supports Asia Pacific and Greater China Equity investment
teams
► Based in Hong Kong
*and predecessor companies
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Investment process
Our strict sell discipline is based on financial and extra-financial considerations
Opportunity costs
Continuous research of investment
ideas
Strong convictions replace weaker
ones
Monitoring of target prices
Risk/return profile of existing vs.
new positions
Fundamentals Risk Management
Risk budget control (ex-ante
tracking error vs. MSCI AC Asia ex
Japan within the bucket 5-8%)
Strategy/geographical limits
(+/-10% vs. our proprietary BNPP SRI
Emerging index)
Size of position (max. 1%
overweight vs. proprietary index)
Change of circumstances
challenges the validity of the
investment case
Target price decline
Valuation de-rating
Deterioration of extra-financial
rating
Portfolio management/sell discipline
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
95
120
145
170
195
220
09/1
2
11/1
2
01/1
3
03/1
3
05/1
3
07/1
3
09/1
3
11/1
3
01/1
4
03/1
4
05/1
4
07/1
4
09/1
4
11/1
4
01/1
5
03/1
5
BNPP Emerging Asia SRI Environment Index NTRMSCI Asia ex Japan
Investment process
Risk control vs. our proprietary BNPP SRI Emerging index
A first screening analyses the big picture and ensures that we are well
positioned to make the most of the current economic climate and the
outlook
Proprietary index maintained by Standard & Poor’s* to check
Green Tigers’ risk and performance against the environmental
investment universe in emerging Asia
The index allows us to have an unparalleled view of the
performance of the environmental universe vs. the broader
market
The index assists in portfolio construction and alpha generation
Index comprised by all stocks eligible for inclusion in Green
Tigers
Portfolio management/risk management
Source : Bloomberg, May 2105; * Bloomberg ticker: BNPEASRI Index
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Fund facts Sub-fund Parvest Green Tigers
Legal form Sub-fund of the Parvest UCITS IV compliant sicav registered under Luxembourg law
Launch date November 2008 (investment process and team change: September 2012)
Risk scale 6 on a scale of 1 to 7 (1: lower risk, 7: higher risk)
Benchmark MSCI AC Asia ex-Japan (NR) Index (EUR)
Recommended investment horizon The higher the risk, the longer the recommended investment horizon
Base currency Euro
Fund managers Alvaro Ruiz-Navajas
Management fees Max 1,5% (Classic, C-share & D-share)
Max 0,60% (Institutions, C-share)
Entry fees/redemption fees Maximum 5% / no redemption fees
Ongoing charges 2,01% (Classic, C-share)
0.96% (Institutions, C-share)
Management company
Delegated management company
BNP Paribas Investment Partners Luxembourg
BNP Paribas Asset Management Paris
ISIN codes Classic capitalisation: LU0823437925
Classic distribution: LU0823438220
Institutional: LU0823438493
Bloomberg code FORGRTC LX (Classic capitalisation, C-share)
FGRTGCD LX (Classic distribution, C-share)
FORGRTI LX (Part Institutions)
For a complete description and definition of risks, please consult the latest available prospectus and KIID of the fund.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Parvest Green Tigers: risk and reward profile
Source: BNP Paribas Investment Partners. This key investor information is accurate at 31 March 2015.
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Socially Responsible Investments: Parvest Green Tigers I May 2015 I
Disclaimers This material is issued and has been prepared by BNP Paribas Asset Management S.A.S. (“BNPP AM”)*, a member of BNP Paribas Investment Partners (BNPP IP)** .
This material is produced for information purposes only and does not constitute:
1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
2. any investment advice.
This material makes reference to certain financial instruments (the “Financial Instrument(s)”) authorised and regulated in its/their jurisdiction(s) of incorporation.
No action has been taken which would permit the public offering of the Financial Instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus, offering document or any other information material, as applicable, of
the relevant Financial Instrument(s) where such action would be required, in particular, in the United States, to US persons (as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a
country in which such Financial Instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the Financial Instrument(s).
Investors considering subscribing for the Financial Instrument(s) should read carefully the most recent prospectus, offering document or other information material and consult the Financial Instrument(s)’ most recent financial reports. The
prospectus, offering document or other information of the Financial Instrument(s) are available from your local BNPP IP correspondents, if any, or from the entities marketing the Financial Instrument(s).
Opinions included in this material constitute the judgment of BNPP AM at the time specified and may be subject to change without notice. BNPP AM is not obliged to update or alter the information or opinions contained within this material.
Investors should consult their own legal and tax advisors in respect of legal, ac-counting, domicile and tax advice prior to investing in the Financial Instrument(s) in order to make an independent determination of the suitability and
consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be
suitable, appropriate or profitable for a client or prospective client’s investment portfolio.
Given the economic and market risks, there can be no assurance that the Financial Instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the
Financial Instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the Financial Instruments may have a significant effect on the
results portrayed in this material. Past performance is not a guide to future performance and the value of the investments in Financial Instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes.
This document is directed only at person(s) who have professional experience in matters relating to investments (“relevant persons”). Any investment or investment activity to which this document relates is available only to and will be engaged
in only with Professional Clients as defined in the rules of the Financial Services Authority. Any person who is not a relevant person should not act or rely on this document or any of its con-tents.
*BNPP AM is an investment manager registered with the “Autorité des marches financiers” in France under no. 96002, a simplified stock company with a capital of 67.373.920 euros with its registered office at 1, boulevard Haussmann, 75009
Paris, France, RCS Paris 319.378.832. www.bnpparibas-ip.com
** “BNP Paribas Investment Partners” is the global brand name of the BNP Paribas group’s asset management services. The individual asset management entities within BNP Paribas Investment Partners if specified herein, are specified for
information only and do not necessarily carry on business in your jurisdiction. For further information, please contact your locally licensed Investment Partner.
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