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Tabula IM launches Paris-aligned bond ETF


Tabula CEO Michael John Lytle

Tabula CEO Michael John Lytle

Tabula Investment Management has launched a green bond ETF aligned with the Paris Agreement on climate change.

The Tabula EUR IG Bond Paris-aligned Climate UCITS ETF offers investors access to investment grade bonds from companies with 50% lower greenhouse gas emissions when compared to the broader market and an annual decarbonisation of at least 7% for a total expense ratio of 0.25%.

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The fund employs an ESG screen, excluding firms which have “violated ‘social norms'”, those which sell controversial weapons and tobacco, and firms which cause “significant environmental harm”.

ISS ESG and Solactive have worked with Tabula to develop the ETF’s benchmark, the Solactive ISS Paris Aligned Select Euro Corporate IG index, which incorporates a focus on liquidity.

Michael John Lytle, Tabula CEO, said: “Tackling climate change is arguably the defining issue of our age and addresses a major risk to all investment portfolios.

“Investors need to utilise specialist climate solutions, and there needs to be a major shift of large asset pools into a range of climate impact investments.”

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Timo Pfeiffer, chief markets officer at Solactive, added: “Tabula’s innovative approach to passive fixed income has resulted in a liquidity-focused core IG ETF that exceeds the emissions reduction goals of the Paris climate agreement.

“We are happy that we can serve as the index provider for this meaningful and important ETF that helps to make the world a greener place.”



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