Tabula Investment Management Limited (Tabula) has announced it now manages over USD500 million across its growing range of differentiated fixed income ETFs, having more than doubled its assets under management (AUM) since the beginning of the year.
“Reaching USD500 million in AUM is a huge milestone for any new asset manager,” says Michael John Lytle, CEO of Tabula Investment Management. “Despite a difficult environment for the fixed income market, our focus on innovation and addressing many of the key themes in the sector is paying dividends, and we have seen strong flows into many of our unique ETFs.”
Data from ETFBook.com shows that European ETP AUM has grown 23 per cent this year to over USD1.5 trillion. But fixed income ETFs have lagged their equity counterparts. European-listed equity ETFs have grown 33 per cent in AuM terms during 2021, while fixed income ETFs have grown just 6 per cent, making Tabula’s AuM growth of more than 100 per cent even more remarkable, the firm says.
Tabula currently offers seven fixed income ETFs, including its Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF, which was developed in partnership with Chinese asset manager Haitong International. The ETF has attracted over USD125 million in under three months and trades on both the London Stock Exchange (USD: TAHY LN) and Xetra (EUR-Hedged: TAEH GY). Tabula says many investors see the recent volatility in Asian high yield bond markets as an attractive opportunity to capture yields in excess of 12 per cent.
Other fixed income ETFs offered by Tabula which have driven AuM growth this year include the Tabula US Enhanced Inflation UCITS ETF, which is the only ETF in the market that provides exposure to both realised and expected US inflation. It has over USD100 million in AUM. The fund trades on the London Stock Exchange (USD: TINF LN; GBP-Hedged: TING LN), Xetra (EUR-Hedged: TABI GY), Borsa Italiana (EUR-Hedged: TINE IM) and SIX Swiss Exchange (CHF-Hedged: TINC SE).
Tabula was also the first ETF provider to launch an SFDR Article 9 fixed income ETF. The Tabula EUR IG Bond Paris-Aligned Climate UCITS ETF (Xetra: TABC GY) delivers exposure to Euro investment grade bonds and currently provides 64 per cent lower greenhouse gas emissions when compared to the broad market, and an annual decarbonisation of at least 7 per cent.
Michael John Lytle adds: “As Tabula grows, we remain committed to providing unique solutions that lie at the cross section of two key industry themes. Firstly, the need for products with better sustainable outcomes, and secondly, the increasing demand for higher-quality fixed income exposures.”