Tabula Investment Management has launched the Tabula Global High Yield Fallen Angels Paris-aligned Climate Ucits ETF, a Paris-aligned fund which capitalises on ‘fallen angel’ companies that are achieving their climate targets.
The fund launched with an initial investment of $50 million from an unnamed Nordic institutional investor.
According to Tabula, the ETF is the first of its kind to meet Article 9 specifications under the Sustainable Finance Disclosure Regulation (SFDR).
There are four areas of focus in its operation – reducing greenhouse gas emissions by at least 50% compared with the broad market, MSCI ESG exclusions to reduce negative impacts, time-based weighting, and global exposure.
Tabula claims fallen angel issuers have higher credit quality compared to the broader high-yield bond universe, while their default rates remain low.
Jason Smith, Tabula CIO commented: “In addition to their lower default risk, many fallen angels are also well positioned for upgrades. Fallen angels tend to be large, well-established names.”
The strategy listed on the London Stock Exchange and Chicago Board Options Exchange, with a total expense ratio of 0.50% of the US dollar-hedged share class and 0.55% for the currency-hedged share classes. Its base currency for trading is US dollar.
This comes after Tabula closed the €5.4 million Tabula European IG Performance Credit Ucits ETF (TCEP) in March due to a lack of demand.
Lombard Odier Investment Managers (LOIM) also launched a fallen angels strategy in November 2021.
© 2023 funds europe
