Investment Fund Awards 2018

Wealth & Finance International - 2018 Investment Fund Awards 35 Established earlier this year, Tabula draws on the vast experience of its Founders to provide innovative solutions. The Firm’s creators felt that, although the macro fundamentals for fixed income are strong, there is a need for more thoughtful passive solutions that could help investors get the best from this asset class. After all, ETFs were born to deliver passive exposure. The first ETFs tracked broad equity indices, and because these funds could be bought and sold like equities, they were traded by cash equity desks and sold by equity salespeople. Equity indices had existed for a century and the underlying securities were liquid with daily prices and closing auctions. Equity ETFs were simple, efficient, easy to price and easy to trade. The only real question for a provider was which equity indices would be most relevant to investors. However, when providers turned their attention to other asset classes like fixed income, the questions were not just about which parts of the market were interesting, but also about how best to gain exposure. Today, the asset class has become a true success story, and there are now over 500 fixed income ETFs. However, half the assets are in only 30. This suggests a lot of unsuccessful experiments as providers tried to work out what investors wanted. However, those large investment grade bond ETFs that have captured assets have brought multiple benefits. As well as giving investors access to a broad range of companies, coupons and maturities in one transaction, they have also created pools of bonds that can be traded by creating and redeeming shares in the fund. In a world where bank balance sheets have shrunk, this new source of liquidity is a significant bonus. The team at Tabula believe that fixed income’s complexity is an opportunity as well as a challenge. Passive exposure to the full spectrum of fixed income is still a work in progress, but the opportunities for investors are significant. Fixed income is more than just a source of simple income. It typically offers more controlled returns than equities and gives exposure to different parts of the balance sheet. The age-old assertion that equities outperform fixed income over most timeframes is too simplistic if you adjust for risk. Additionally, increasingly, techniques like factor investing, which have been practised for decades by specialist fixed income managers, can be made available to multi-asset investors via ETFs. Fundamentally, Tabula believes that success comes from focus on the bottom line: creating, running and distributing funds that help investors make money. Increasingly investors want to keep control of the broad parameters around which markets they access and do not. In areas where the underlying assets are priced and traded actively, delivering programmatic exposure to risk factors is valuable but not always available. As such, the team at Tabula know that once they create and run great funds, the challenge is talking to the right investors, engaging with them and listening to them. It can be surprisingly hard to stay focused on these simple objectives as organisations grow. It is very important to keep focused on investors’ needs rather than their organisation’s issues and dynamics, and this is the focus for this experienced team. Tabula is a fixed income manager focused on ETFs. As part of our overview of a selection of winners from this year’s Investment Fund Awards we profile this dynamic and innovative young firm to find out more. Best Emerging ETF Provider - UK Tabula Tabula’s first product, the Tabula European Performance Credit UCITS ETF (EUR) addresses the investment needs identified in the European credit market, via a strategy based on CDS indices: a liquid and diversified instrument with minimal interest rate risk that provides a competitive yield in the current environment. Looking to the future, Tabula is focused on delivering fixed income factors often not available to passive investors. After all, fixed income ETFs are only beginning to come of age. The next leap forward will come from providers who are focused on the asset class and have the in-depth knowledge to understand and deliver the opportunities. There has never been a better time to be an investor looking for passive fixed income exposure, and Tabula is eager to support their drive for success. Company: Tabula Contact: Lotfi Ladjemi Address: Stornoway House, 13 Cleveland Row, London, SW1A 1DH, UK Phone: +44 20 7968 7472 Website: FD180025 Tabula