Tabula launches Sovereign US Bond ETF

Tabula launches sterling-hedged share class of its Gulf Cooperation Council Government Bond ETFF on the London Stock Exchange

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Stefan Garcia Chief Commercial Officer of Tabula Investment Management

European ETF provider Tabula Investment Management Limited has listed a sterling-hedged share class of the Tabula GCC Sovereign USD Bonds UCITS ETF (TGGD LN) on the London Stock Exchange. The new listing enables UK investors to access GCC government bonds, while aiming to minimise currency risk .

The share class joins the USD base currency class of the ETF, which launched at the beginning of January with US$30 million in assets. TGGD LN offers a current gross yield of ~4% in GBP  and a duration of 7.9 years.

Liquid exposure to some of the fastest-growing emerging markets

The ETF aims to track the ICE Gulf Cooperation Council Government Bond ex-144a Index (the Index; ticker: EGCC Index). Developed by Tabula, the Index is composed of approximately 100 AA- to B-rated government bonds denominated in USD. To be included, bonds require a minimum 1yr maturity and a minimum amount outstanding of US$500m. The Index currently provides exposure to six GCC countries and applies a 25% country cap.

“TGGD has been launched in response to demand from UK investors for more granular asset allocation options, and provides an ETF exposure that until this year did not exist. We believe the fund will be of great value to UK investors looking for attractive yields and exposure to the exciting growth potential of the GCC,” said Tabula Chief Commercial Officer, Stefan Garcia.

“As a basket, 10-year GCC government bonds are currently offering yields almost 2% higher than US Treasuries. The GCC countries have low debt-to-GDP ratios and increasingly dynamic economies that could be considered healthy compensation for investors trying to inject more yield into their portfolio” adds Tabula CIO, Jason Smith.

Tabula GCC Sovereign USD Bonds UCITS ETF (USD) – GBP-Hedged Dist

Efficient and liquid access to some of the fastest-growing emerging economies

The Tabula GCC Sovereign USD Bonds UCITS ETF (USD) – GBP-Hedged Distributing aims to track the ICE Gulf Cooperation Council Government Bond ex-144a Index (EGCC Index), less fees and expenses.

Developed by Tabula, the ICE Gulf Cooperation Council Government Bond ex-144a Index (the “Index”) is composed of ~100 AA to B rated bonds denominated in USD. To be included, bonds require a minimum 1yr maturity and a minimum amount outstanding of US$500m. The Index currently provides exposure to 6 GCC countries and applies a 25% country cap.

The ETF invests in a portfolio of sovereign bonds that reflects the composition of the Index as far as practicable, less fees and expenses.

About the ETF

Source : ETFWorld.co.uk