Tabula Launches ETF Tracking Solactive Paris-Aligned Short-Term Corporate Bond Index
Tabula Investment Management introduces the Tabula EUR Ultrashort IG Bond Paris-Aligned Climate UCITS ETF (TUCP GY), leveraging provisions set in the Paris Agreement for enhancing international support in climate finance, technology development and building resilience. This new ETF seeks to track the Solactive ISS Paris Aligned Select 0-1 Year Euro Corporate IG Index, which measures the performance of an optimized portfolio of short-term euro investment grade corporate bonds with maturities up to one year. The underlying Index aims to limit global warming to 1.5°C in accordance with the Paris Agreement, while integrating environmental, social and governance (ESG) criteria into the selection process.
Securities are initially chosen from Solactive’s flagship 0-1 Year Euro Corporate IG Index. A proprietary screening methodology developed by ISS ESG is then applied to identify bonds issued by companies involved in sustainable activities and exclude those in controversial industries such as fossil fuels, weapons, tobacco, or other restricted business activities. Component weights are determined using an optimization model that reduces the portfolio’s overall carbon emissions versus the benchmark index, while maintaining similar credit risk profiles to the latter. The index also includes a 7% annual decarbonization schedule.
The Solactive ISS Paris Aligned Select 0-1 Year Euro Corporate IG Index aligns with both climate change goals and investors’ income needs. As a short-term corporate bond index, it supports companies working to address sustainability under the Paris Agreement, while also providing a stable income stream. This offers investors seeking environmental alignment and regular returns a way to earn interest from select European issuers committed to the Agreement’s objectives.
The ETF listed on 11 October on Xetra (Deutsche Börse), with ticker symbol TUCP GY.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “Through our collaboration with Tabula we are excited to offer investors increased opportunities to align their portfolios with the vital objectives of the Paris Agreement and drive greater capital allocation towards companies demonstrating clear support for the global transition to net zero emissions.”
Michael John Lytle, CEO at Tabula added: “We are once again delighted to have worked with Solactive and ISS ESG to bring another first-to-market climate ETF to our European investors. TUCP is the first Paris-aligned ultrashort product, helping multi asset managers align their full portfolio with the Paris goals. This fund joins our existing stable of euro investment grade, global fallen angels and euro high yield Paris-aligned funds, showing our commitment to providing investors with SFDR Article 9 exposures across the fixed income spectrum.”