Lytle Michael John Tabula ETF

Tabula launches one Bond ETF on Xetra

Tabula lists  US$100 Million Aum Asia Ex-Japan High Yield Esg Usd Corporate Bond Ucits ETF on Xetra

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Michael John Lytle  Tabula CEO

  • TAEH GY offers an attractive yield (~11.5%), low duration (~2.8yrs) in an sfdr article 8 fund
  • The ETF is run in partnership with Haitong International Asset Management

European fixed income ETF provider Tabula Investment Management Limited has listed its successful Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF on Xetra (Ticker: TAEH GY). The new listing offers investors EUR-Hedged exposure to the offshore Asian high yield market. The ETF was launched on the London Stock Exchange (TAHY LN) in early September, and has already attracted US$100 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 ~11.5% ), a duration of ~2.8 years, and is classified as Article 8 under EU Sustainable Finance Disclosure Regulation (SFDR).

Tapping the Asian High Yield Sector

“While the opportunity in Asian high yield is clear, there are also some challenges to address,” 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 two months of trading shows there is significant demand for this asset class from investors. By offering a EUR-Hedged listing on Xetra, European 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 Xetra 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.”

 “As well as yield, this market can provide interesting diversification benefits in a fixed income portfolio, since it is often at a different stage in the market cycle. It is also worth noting that default rates for USD Asian high yield bonds have been significantly lower than for US high yield bonds.”

  Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG UCITS ETF (USD) – Acc. Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG UCITS ETF (USD) – EUR-Hedged Dist.
Base Currency USD USD
Trading Currency USD EUR
Exchange London Stock Exchange Xetra
OCF 0.60% p.a. 0.65% p.a.
Share class details USD Accumulating EUR-Hedged Distributing
Index iBoxx MSCI ESG USD Asia ex-Japan High Yield Capped iBoxx MSCI ESG USD Asia ex-Japan High Yield Capped
Index Ticker IBXXUXJT Index IBXXUXJT Index

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