European ETF provider Tabula Investment Management Limited (Tabula ETF) has announced that it has cut the fee on its EUR HY Bond Paris-Aligned Climate UCITS ETF (THEP GY) from 0.50% to 0.25%.
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Michael John Lytle, CEO of Tabula
The ETF is the only EU SFDR Article 9 fund, has a two-year track record, ~€60 million in assets and has a current yield of 6.7% . THEP is rated A by MSCI ESG.
The Tabula EUR HY Bond Paris-aligned Climate UCITS ETF (the Fund) aims to replicate the performance of the iBoxx MSCI ESG EUR High Yield Paris Aligned Capped Index (IBXXEPAT Index), less fees and expenses.
The Index provides liquid and diversified exposure to EUR-denominated High Yield bonds, with a focus on both climate and broader ESG. To meet the criteria for an EU Paris-aligned benchmark, it targets 50% lower GHG emissions than the broad euro high yield market (as represented by iBoxx EUR High Yield 3% Issuer Cap Custom Index) and reduces its GHG emissions by 7% per annum. It also excludes issuers in violation of social norms (e.g. the UN Global Compact), involved with controversial weapons, fossil fuels (revenue thresholds) or tobacco or those causing significant environmental harm.
To enhance ESG characteristics, the index applies additional screens (alcohol, adult entertainment, gambling, conventional weapons, civilian firearms, nuclear power, GMO, nuclear weapons and cannabis), resulting in more sectoral exclusions, no exposure to thermal coal, and a better MSCI ESG sustainable impact rating than peers. Unlike competitor funds, THEP also overweights issuers with strong or improving ESG ratings and vice versa.
“Investors continue to seek robust Article 9 Paris-aligned solutions for their core portfolio positions. The unique characteristics of our EUR HY Bond Paris-Aligned Climate UCITS ETF makes it particularly attractive for investors looking for higher yields in the current interest rate environment,” says Michael John Lytle, CEO of Tabula. “To support further potential inflows into the ETF, we have cut its fee by half to 0.25% making it not only unique but very aggressively priced. THEP is part of our Paris-aligned toolkit which also includes ultrashort, full maturity investment grade and global fallen angels ETFs.”
The Tabula EUR HY Bond Paris-Aligned Climate UCITS ETF is listed on Xetra (THEP GY), Borsa Italiana (THEP IM) and BX Swiss (THEP SW).
Source : ETFWorld.co.uk
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