Data: Net Asset Value (NAV) and Assets under Management (AuM) as of 6 May 2021
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 exposure to investment grade credit curve steepness in the US and Europe
The Tabula Global IG Credit Curve Steepener UCITS ETF (EUR) - Accumulating aims to track the iTraxx-CDX IG Global Credit Steepener Index (ITXCDXST Index), less fees and expenses.
About the index
The ITXCDXST Index provides exposure to credit curve steepness in North American and European Investment Grade CDS markets. The index tracks the return of taking equal positions on CDS indices by selling 5y protection and buying 10y protection:
- 50% iTraxx Europe 5y and 10y (125 investment grade entities, equally weighted)
- 50% CDX IG 5y and 10y (125 investment grade entities, equally weighted)
The Index is rebalanced monthly to maintain an approximate 3:1 market exposure to the short On-the-Run 10 Year Index CDS position where the weight of the long On-the-Run 5 Year Index CDS position is determined to offset the credit sensitivity of the 10 Year position.
The ETF aims to directly replicate the index composition via CDS index positions and cash collateral (typically investment grade European sovereign bonds with maturity <12 months). To minimise counterparty risk, CDS trades are executed through regulated brokers and centrally cleared.
The fund is currently registered for sale in Ireland, Austria, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom.
|Investment manager:||Tabula Investment Management Ltd.|
|Administration||HSBC Securities Services (Ireland) DAC|
|Custody:||HSBC France (HBFR) Dublin Branch|
|Fund inception:||18 August 2020|
|Share class inception:||18 August 2020|
|Share class currency:||EUR|
|UK distributor/reporting status:||Yes|
|ISA & SIPP eligible:||Yes|
|Index name:||iTraxx-CDX IG Global Credit Steepener Index|
|Index provider:||IHS Markit|
|Bloomberg index ticker:||ITXCDXST Index|
|Regional focus:||North America and Europe|
|Trading hours:||0900 to 1730 CET|
|Settlement:||T+2, however primary market creation settles T+1|
|Bloomberg ticker:||TCRS GR|
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 Sub-Fund is primarily exposed to long and short credit risk. Returns will increase 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 buying and selling CDS on subordinate debt, such debt may be subordinate to senior debt.
Risk of financial derivatives and techniques: The Sub-Fund invests in financial derivative instruments to gain both long and 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 the reverse positions in the underlying instruments.
Foreign exchange risk: The Sub-fund invests in EUR and USD denominated assets and does not provide a hedge to currency exposure in the base class. Strengthening or weakening of currencies may impact performance.
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 Sub-Fund may incur losses if any institution providing services such as safekeeping of assets 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 Sub-Fund when due.