Data: Net Asset Value (NAV) and Assets under Management (AuM) as of 10 August 2020
Capital is at risk. The value of your investment may go down as well as up and you may not get back the amount you invested. Investors should read the Key risks section of this page, Key Investor Information Document and Prospectus prior to investing.
Passive short exposure to North American credit markets, with enhanced liquidity
The Tabula North American CDX High Yield Credit Short UCITS ETF (USD) aims to achieve the returns of the CDX North American High Yield Credit Short Index (CDXNAHYS Index), less fees and expenses.
About the index
The CDXNAHYS Index provides short exposure to high yield North American corporate credit. To emphasise credit risk and reduce direct interest rate risk, it takes exposure via a liquid credit default swap (CDS) index rather than corporate bonds:
- CDX North American High Yield 5y (100 sub-investment grade entities, equal weight)
The index reflects the return from buying protection on the current series of CDX North American High Yield 5y. It has market exposure of 100%, rebalanced monthly. Exposure is calculated as the ratio of CDS bond equivalent price to index value, so the ratio of notional to Net Asset Value may not be exactly 100%.
The Fund aims to directly replicate the index composition via CDS index positions and cash collateral (the fund may hold more than 35% of its assets in US treasuries for cash management purposes). To minimise counterparty risk, CDS index trades are executed through regulated brokers and centrally cleared.
The fund is currently registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Portugal, Sweden, Switzerland, the United Kingdom.
|Investment manager:||Cheyne Capital Management (UK) LLP|
|Custody & administration:||HSBC Securities Services (Ireland) DAC|
|Fund inception:||18 June 2020|
|Share class inception:||18 June 2020|
|Share class currency:||USD|
|Primary listing:||London Stock Exchange|
|UK distributor/reporting status:||Pending approval|
|ISA & SIPP eligible:||Yes|
|Index name:||CDX North American High Yield Credit Short Index|
|Trading hours:||IHS Markit|
|Bloomberg index ticker:||CDXNAHYS|
|Regional focus:||North America|
|Exchange:||London Stock Exchange|
|Trading hours:||0800 to 1630 London time|
|Settlement:||T+2, however primary market creation settles T+1|
|Bloomberg ticker:||TABS LN|
No capital protection: The value of your investment may go down as well as up and you may not get back the amount you invested.
Market risk: The fund is primarily exposed to credit risk. Returns will suffer if there is a default, or higher perceived risk of default, among the entities referenced by the CDS indices, or a write-down (“bail in”) of an entity’s debt by financial authorities. The Sub-Fund may also be impacted by other factors affecting the value of debt securities issued by those entities, including changes in interest rates and exchange rates. When selling CDS on subordinate debt, such debt may be subordinate to senior debt.
Short exposure risk: The Sub-Fund uses a short market exposure to the underlying market with rebalancing on a monthly basis. The performance of the Sub-Fund over periods longer than one month may not be inversely proportional or symmetrical with the returns of long positions in the underlying instruments. The assumed return on cash in the index also contributes to asymmetry in returns versus a long position. The Sub-Fund is intended for investors who wish to take a short-term view on the Index and whose investments are not intended as buy and hold.
Leverage: The Sub-Fund may use leverage, so losses may be magnified.
Liquidity risk: Lower liquidity means there are insufficient buyers or sellers to allow the Sub-Fund to sell or buy investments readily. Neither the Index provider nor the issuer make any representation or forecast on the liquidity of CDS transactions.
Counterparty risk: The fund may incur losses if any institution providing services or acting as a derivatives counterparty becomes insolvent.
Credit risk: The issuer of a financial asset held within the fund may not pay income or repay capital to the fund when due.