European ETF provider Tabula Investment Management has added a GBP-Hedged share class of its Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF to the London Stock Exchange (Ticker: TAGH LN).
The new listing offers investors GBP-Hedged exposure to the offshore Asian high yield market. The ETF (Ticker: TAHY LN, USD share class) was launched in early September, and has already attracted over USD200 million of assets from a range of institutional investors.
The firm writes that 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 ~17 per cent), a duration of ~2.7 years, and is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).
“Reception from institutional investors has shown there is significant demand for this asset class,” says Tabula Chief Commercial Officer Stefan Garcia. “Many investors are choosing the fund due to its significant exposure to Chinese Real Estate, which has benefited from the support of the Chinese authorities over the last few months,” he added.
Tabula’s ETF has rallied more than 13 per cent since mid-March, when Chinese vice premier Liu Hu vowed to support the Chinese economy.
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. This new share class 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.”