Tabula Investment Management Limited has announced it now manages over US$500 million across its growing range of differentiated fixed income ETFs, having more than doubled its assets under management (AUM) since the beginning of the year.
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Michael John Lytle CEO of Tabula Investment Management
- Newly-launched Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF has attracted over US$125 million of inflows since its launch in September
- Demand for US Enhanced Inflation ETF and ESG strategies also driving growth
“Reaching US$500 million in AUM is a huge milestone for any new asset manager,” said Michael John Lytle, CEO of Tabula Investment Management. “Despite a difficult environment for the fixed income market, our focus on innovation and addressing many of the key themes in the sector is paying dividends, and we have seen strong flows into many of our unique ETFs.”
Data from ETFBook.com shows that European Exchange Traded Product (ETP) AUM has grown 23% this year to over US$1.5 trillion. But fixed income ETFs have lagged their equity counterparts. European-listed equity ETFs have grown 33% in AuM terms during 2021, while fixed income ETFs have grown just 6%, making Tabula’s AuM growth of more than 100% even more remarkable.
Tabula currently offers seven fixed income ETFs, including its Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF, which was developed in partnership with Chinese asset manager Haitong International. The ETF has attracted over US$125 million in under three months and trades on both the London Stock Exchange (USD: TAHY LN) and Xetra (EUR-Hedged: TAEH GY). Tabula says many investors see the recent volatility in Asian high yield bond markets as an attractive opportunity to capture yields in excess of 12%.
Other fixed income ETFs offered by Tabula which have driven AuM growth this year include the Tabula US Enhanced Inflation UCITS ETF, which is the only ETF in the market that provides exposure to both realised and expected US inflation. It has over US$100 million in AUM. The fund trades on the London Stock Exchange (USD: TINF LN; GBP-Hedged: TING LN), Xetra (EUR-Hedged: TABI GY), Borsa Italiana (EUR-Hedged: TINE IM) and SIX Swiss Exchange (CHF-Hedged: TINC SE).
Tabula was also the first ETF provider to launch an SFDR Article 9 fixed income ETF. The Tabula EUR IG Bond Paris-Aligned Climate UCITS ETF (Xetra: TABC GY) delivers exposure to Euro investment grade bonds and currently provides 64% lower greenhouse gas emissions when compared to the broad market, and an annual decarbonisation of at least 7%.
Michael John Lytle added, “As Tabula grows, we remain committed to providing unique solutions that lie at the cross section of two key industry themes. Firstly, the need for products with better sustainable outcomes, and secondly, the increasing demand for higher-quality fixed income exposures.”
Source : ETFWorld.co.uk
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