European fixed income ETF provider Tabula Investment Management has listed its Asia ex-Japan High Yield Corporate USD Bond ESG Ucits ETF (TAEH) on Xetra.
The listing will offer investors euro-hedged exposure to the offshore Asian high yield market.
The ETF was launched on the London Stock Exchange in early September and has attracted $100 million of assets from a range of institutional investors.
It was developed in partnership with Haitong International Asset Management, an investment manager with expertise in Asian high yield market and ESG credentials.
The Tabula Haitong Asia ex-Japan high yield Corp US bond ESG Ucits ETF aims to enhance liquidity and ESG profile, while maintaining an attractive yield, (currently 11.5%), and has a duration of 2.8 years.
It is classified as Article 8 under EU Sustainable Finance Disclosure Regulation (SFDR).
Michael John Lytle, CEO at Tabula said: “While the opportunity in Asian high yield is clear, there are also some challenges to address.
“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.”
He added that the reception from institutional investors in the first two months of trading “shows there is significant demand for this asset class from investors”.
