Tabula Haitong Asia ex-Japan High Yield Corp USD Bond ESG UCITS ETF GBP-Hedged (Dist)

Issuer: Janus Henderson

Asset Class: Fixed Income

TER: 65bps

Trading Currency: GBP

Pays Income: False

Listing Date: 24 Jun 2022

Ticker: TAGD

ISIN: IE000XIITCN5

This actively managed fund offers targeted exposure to the Asian high-yield bond market, a segment known for its potential to deliver attractive income and capital appreciation. The strategy focuses on identifying undervalued fixed-income securities issued by companies across Asia, excluding Japan. By employing a rigorous, research-driven approach, the portfolio managers aim to construct a diversified portfolio that balances risk and reward.

A key aspect of the investment process is the incorporation of environmental, social, and governance (ESG) screening criteria. This involves excluding issuers involved in specific controversial sectors, such as thermal coal, tobacco, and certain weapons manufacturing, appealing to investors who prioritize sustainable and responsible investing principles. This ESG overlay aims to mitigate certain risks and align the portfolio with broader sustainability trends, without sacrificing the core objective of seeking high income and capital growth.

The fund is designed for investors seeking to enhance their portfolio's yield and diversify their fixed-income allocation geographically. The Asian high-yield market can offer higher returns compared to developed market counterparts, albeit with a higher level of risk. The active management component is crucial in this context, allowing the managers to navigate the complexities of various Asian economies, manage credit risk through in-depth analysis, and capitalize on market inefficiencies. This particular share class is hedged, which mitigates the impact of currency fluctuations between the portfolio's underlying assets and the investor's home currency, providing a more direct exposure to the performance of the Asian bond market itself.