BNP Paribas Global Markets’ THEAM Quant Strategies and BNP Paribas Exane Research are pleased to develop their ongoing partnership on thematic products with the launch of the THEAM Quant – Healthy Living Opportunities fund (“HLO”).
The fund seeks exposure to key sectors, geographies and companies that are most aligned with the Healthy Living theme, as changing demographic appetite has led to a rapid expansion of this market. HLO tackles the overall industry by splitting it into four segments – active lifestyle, comfort and wellbeing, diagnostics and cure, and healthy food.
Drawing from BNP Paribas QIS’ knowledge and experience in dynamic equity strategies, the investment process incorporates quantitative criteria with the aim of enhancing the fund’s risk-return profile.
It employs in-depth analyst intelligence to identify the core activities, technologies and capital investments that constitute the Healthy Living ecosystem. This fundamental information is then enriched by a proprietary Artificial Intelligence (“AI”) model that enables large-scale scanning of companies’ activities, and ultimately selecting those that maximise the portfolio’s Healthy Living score.
It simultaneously excludes companies that participate in intensive carbon-generating or disputable activities, in breach of the UN Global Compact guidelines, involved in any severe ESG controversies, or have otherwise weak financial fundamentals.
The fund’s sectoral distribution is dominated by healthcare, as well as both non-cyclical and cyclical consumer goods and services. Its global allocation universe covers liquid companies across three main regions – Europe, North America, and Asia. These stocks are weighted through a quantitative optimisation process and rebalanced on a quarterly basis.
Vincent Berard, Head of BNP Paribas Global Markets’ Product Strategy for THEAM Quant Strategies, said:“We are pleased to offer clients an opportunity to access the burgeoning investment opportunity within the rapidly growing Healthy Living market and ecosystem.
“Driven largely by younger generations’ awareness and willingness to spend more to attain a healthier lifestyle, the wellness economy is expected to grow by 8.6% annually to reach a total value of $8.5 trillion by 2027[1].
“Our approach to this theme casts the net far beyond just the healthcare sector. In addition to companies focused on extending lifespan, we are also interested in those that are improving general wellbeing through preventative measures (healthier eating, regular exercise, good hygiene) which could be a lot more effective and cost-efficient than treating illnesses after they developed; it’s about being proactive rather than reactive.”
Roberto Bartolomei, Head of BNP Paribas Global Markets’ Sales for THEAM Quant Strategies, said:“Following the wellness economy’s quick recovery since the 2020 pandemic, the HLO strategy is one of this sector’s most exciting thematic investment products available today.
“Most notably, this fund balances investor demand for access to this theme with a high conviction approach that combines artificial intelligence and human expertise to identify companies playing a role in the Healthy Living ecosystem.
“Our QIS team has worked closely with Exane researchers to refine the investable thematic index, backed up by top-notch independent research and augmented by additional ESG and risk management layers.
“This ongoing collaboration since 2021 has progressively strengthened BNP Paribas’ thematic research capabilities – providing another layer of proficiency to the growing THEAM Quant funds range.”
