Tabula Investment Management appoints Jason Smith as Chief Investment Officer in newly created role to help capitalise on increasing demand for fixed income ETFs….
Michael John Lytle Tabula CEO
New research reveals 88% of institutional investors and wealth managers think 2020 fixed income ETF flows will be higher than in 2019
Two main reasons why professional investors expect flows to increase are more fixed income ETFs will be listed and greater innovation in the sector with new ETFs offering access to more parts of the fixed income market.
Specialist fixed income ETF provider Tabula Investment management has created the new role of Chief Investment Officer in order to build on the company’s innovation and strong growth.
The newly appointed CIO, Jason Smith, has responsibility for designing and building a range of new funds. Jason has over 20 years’ experience at several leading global asset managers and was most recently a senior portfolio manager at Goldman Sachs Asset Management, where he was focused on a variety of fixed income portfolios including rates, inflation, LDI and secured finance.
Previously, he was head of portfolio management for the absolute return funds at Barclays Capital, receiving both a Citywire ‘A’ rating and Lipper leader award for performance. He has also managed a range of fixed income and absolute return portfolios at BlackRock, J.P. Morgan, Towers Perrin and IBM.
“Our whole ethos is about offering innovative fixed income solutions that expand the range of options offered to address the real needs of investors. We have made a great start here and Jason’s appointment is a huge addition to our team, enhancing our ability to challenge the boundaries for and deliver significant innovation in the fixed income space,” said Tabula CEO Michael John Lytle.
Jason Smith, CIO, Tabula, “This is a very exciting time for the fixed income ETF space. Last year saw record flows into fixed income ETFs, and our research suggests 2020 could be another record year. There is growing demand from investors for new innovative solutions that offer real and very specific solutions. I am excited to be part of the Tabula team and its ambitious plans.”
New Tabula research with institutional investors and wealth managers shows 24% think 2020 fixed income ETF flows will increase dramatically when compared to 2019 and 64% think there will be a slight increase (last year over €55bn added to fixed income ETFs/ETPs in Europe). Year-to-date European fixed income ETF net flows of over €8.5bn further support these investor insights.
In terms of the reasons why professional investors expect flows to increase, 70% say it will be due to more fixed income ETFs being listed, and therefore more funds available to invest in. Over half (56%) say it will be because of greater innovation in the sector with new ETFs offering access to more parts of the fixed income market.
One in three (32%) say it will be due to ‘sector rebalancing’; ETFs are under-utilised within the fixed income sector. Only 8% say it will be down to cost – ETFs enable investors to gain access to fixed income at lower prices.
Tabula now has five funds providing liquid passive exposure to credit spreads, investment grade corporate bonds, and alternative risk premia. It’s latest launch, the Tabula iTraxx IG Bond UCITS ETF, offers passive exposure to the new iBoxx iTraxx Europe Bond Index, which Tabula has developed in partnership with IHS Markit.
The innovative index combines the robust construction of an iBoxx bond index with the geographic and sector exposure of iTraxx Europe, providing highly liquid European corporate bond exposure.
Tabula European Performance Credit UCITS ETF (EUR)
Tabula European iTraxx Crossover Credit UCITS ETF (EUR)
Tabula European iTraxx Crossover Credit Short UCITS ETF (EUR)
Tabula iTraxx IG Bond UCITS ETF (EUR)
Tabula J.P. Morgan Global Credit Volatility Premium Index UCITS ETF (EUR)
Source : ETFWorld.co.uk