European fixed income ETF provider Tabula Investment Management Limited (“Tabula”) has launched Europe’s first Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF (TAHY on the LSE). The ETF was developed in partnership with Haitong International Asset Management (“Haitong International”), an investment manager with considerable expertise in the Asian high yield market as well as strong ESG credentials.(please see the attached press release).
The new 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 ~9%), a duration of ~2.6 years, and is classified as Article 8 under EU Sustainable Finance Disclosure Regulation (SFDR).
The Reference Index
The ETF tracks a new index developed by Tabula, Haitong International and IHS Markit. The iBoxx Asia ex Japan USD Corporates ESG High Yield Index combines proven iBoxx index construction expertise with high-quality MSCI ESG data. It applies a more stringent liquidity filter than its parent index, the iBoxx Asia ex-Japan USD Corporates High Yield Index, and only includes bonds that have a minimum size of US$250 million, plus strict ESG screening to exclude issuers involved in certain controversial business activities. The index also uses ESG tilts, and over-weights issuers with higher ESG ratings, and/or positive ESG momentum.