Tabula, in partnership with Haitong Asset Management, has launched Europe’s first Asia ex-Japan high yield corporate bond ESG ETF.

The Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG ETF has been developed by Tabula, Haitong along with IHS Markit and is benchmarked to the iBoxx MSCI ESG USD Asia ex-Japan High Yield Capped index. The index overweights issuers with higher ESG ratings or positive ESG momentum and the fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation.

Michael John Lytle, CEO of Tabula, says, “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. Working in partnership with Haitong, leveraging their considerable experience and on-the-ground presence in the region, as well as IHS Markit, we have been able to address these opportunities.”