Tabula Investment Management Limited has listed its successful euro high yield bond ETF on Borsa Italiana (Ticker: THEP IM). The new listing offers investors euro exposure to high yield corporate bonds while meeting the EU criteria for a Paris-Aligned Benchmark (PAB).
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Michael John Lytle Tabula CEO
The ETF was listed on Xetra at the beginning of February and has already attracted nearly €60 million of assets.
The fund is classified as Article 9 under the EU Sustainable Finance Disclosure Regulation.
Paris-aligned ETFs have gained momentum after COP26
“There is now no doubt that investors want to align their portfolios with the Paris Climate Accord goals,” says Tabula CEO Michael John Lytle. “We’ve seen a raft of new Paris-aligned equity ETFs but fixed income investors risk being left behind. Tabula is keen to address this by adding a Euro high yield ETF to our existing ~€125 million Euro investment grade fund”.
To meet the EU standards, Paris-aligned ETFs must deliver 50% lower GHG emissions when compared to the broader market benchmark, plus a 7% annual reduction, as well as excluding fossil fuel companies. These funds must also exclude issuers who violate global norms like the UN Global Compact, cannot include companies that do significant environmental harm, nor include companies involved with controversial weapons or tobacco.
Investors want Paris-alignment… and more
As well as meeting the EU PAB criteria, the new Tabula ETF aims to provide significant additional ESG benefits. “Our investors tell us they need investments that set out strong climate standards and go a step further in terms of broader ESG integration,” says Franco Mancini, Italian country manager at Tabula. The Tabula ETF applies additional exclusions such as nuclear power, gambling, alcohol and civilian firearms. It also overweights issuers with strong or improving ESG ratings, and vice versa. “With this ETF, we hope to meet both the climate objectives and the wider ESG goals of many high yield investors,” Mancini added.
Now available on Borsa Italiana
THEP is now listed on Borsa Italiana with ticker THEP IM and an annual ongoing charge figure (OCF) of 0.50%. The ETF is already available on Xetra (THEP GY).
About the ETF
| Tabula EUR HY Bond Paris-Aligned Climate UCITS ETF (EUR) | |||
| Base Currency | EUR | ||
| Trading Currency | EUR | ||
| Exchange | Xetra | Borsa Italiana | |
| OCF | 0.50% | ||
| Share class details | EUR Accumulating | ||
| Ticker | THEP GY | THEP IM | |
| ISIN | IE000V6NHO66 | ||
| Index | iBoxx MSCI ESG EUR High Yield Paris Aligned Capped Index | ||
| Index Ticker | IBXXEPAT | ||
| Base Currency | EUR | ||
Source : ETFWorld.co.uk
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