Tabula lists one High Yield ESG Bond ETF on Borsa Italiana

Tabula lists US$200 Million Aum Asia Ex-Japan High Yield ESG Usd Corporate Bond UCITS ETF on Borsa Italiana

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Michael John Lytle Tabula CEO

European ETF provider Tabula Investment Management Limited has listed its successful Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF on Borsa Italiana (Ticker: TAEH IM). The new listing offers investors EUR-hedged exposure to the offshore Asian high yield market. The ETF was launched on the London Stock Exchange (Ticker: TAHY LN) in early September, and has already attracted over US$200 million of assets from a range of institutional investors.

The ETF was developed in partnership with Haitong International Asset Management, an investment manager with considerable expertise in the Asian high yield market as well as strong ESG credentials.

The Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG UCITS ETF aims to enhance both liquidity and ESG profile, while maintaining an attractive yield (currently ~14% ), a duration of ~2.8 years, and is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).

Tapping the Asian High Yield Sector

“The opportunity in Asian high yield is clear,” says Tabula CEO Michael John Lytle. “With high yield issuers, there can be greater concerns about ESG, particularly governance, and liquidity is also a consideration. Local expertise can significantly improve trading efficiency. Working in partnership with Haitong International, leveraging their considerable experience and on-the-ground presence in the region, as well as IHS Markit, we have been able to address these opportunities.”

“The reception from institutional investors in the first three months of trading shows there is significant demand for this asset class in Europe. By offering a EUR-hedged listing on Borsa Italiana, ETF investors can now access the Asian USD high yield corporate bond market efficiently and make far more granular asset allocation decisions.”

Frederick Chu, Head of ETF Business at Haitong International, says: “Asian credit is now a trillion-dollar asset class – and China the world’s second largest bond market – but many European investors are significantly underweight. The new listing on Borsa Italiana shows our collective commitment to European investors. The ETF provides straightforward access to the USD segment of Asia’s high yield market, while also addressing ESG and liquidity challenges.”

Now available on Borsa Italiana

TAEH is now listed on Borsa Italiana with ticker TAEH IM and an annual ongoing charge figure (OCF) of 0.65%. The ETF is already available on the LSE (TAHY LN) and a EUR-hedged distributing share class is also available on Xetra (TAEH GY).

About the ETF

 Source : ETFWorld.co.uk