HSBC to help Tabula with ETFs
May 15, 2018

HSBC is to provide custody and administration services to new exchange-traded funds (ETF) provider, Tabula Investment Management. Tabula says it is set to launch a range of unique fixed income funds targeting European institutional investors including insurance companies, pension funds, asset managers, private banks and wealth managers. Tabula Investment Management's sales team will cover the UK, Ireland, Germany, France, Switzerland, Austria, Belgium, Luxembourg, the Netherlands and the Nordics. 

Tabula will be led by Michael John Lytle as Chief Executive Officer. He was one of the founding partners of independent ETF provider Source (acquired last year by Invesco). Prior to that he spent 18 years at Morgan Stanley, mainly in fixed income. Hasan Sabri will be Chief Operating Officer. Sabri has over 30 years of experience in FinTech, asset management and banking. He has held roles as diverse as the CEO of MyInvest, COO of MoneyFarm and COO of GLG Partners (now part of Man Group).

Tabula says it will focus on fixed income supporting investors as flows into the asset class accelerate. The company believes that although fundamentals and market dynamics are positive for fixed income ETFs, the persistent innovation that ignited the equity ETF market has been lacking in this sector. As a result, the large incumbent funds continue to gather assets, but investors are hungry for new products.

Tabula will launch its first ETFs soon, providing new and more precise tools for passive credit exposure. Tabula plans to expand its offering across the asset class, moving from investment grade and high yield credit into inflation, government debt, emerging markets, bank capital, money markets, ESG strategies and Solvency II-efficient funds.

Lytle said: "Passive strategies account for only 5 percent of fixed income fund assets, compared to 30 percent for equities. We expect this gap to close, but how quickly will depend on how compelling the available funds are. There are currently over 400 fixed income ETFs in Europe, but almost half of the assets are concentrated in the top 20.  We are optimistic that delivering precise exposure and addressing specific investment needs will resonate with investors and complement existing products." 

Until Tabula receives its own authorization, it will be an Appointed Representative of Cheyne Capital, which is authorised and regulated by the Financial Conduct Authority.

HSBC is not only providing custody and administration services but has taken a holistic approach to supporting the new venture, providing a range of banking services that most institutions would reserve for larger, more established businesses.

Cian Burke, Global Head of HSBC Securities Services, said: "ETFs continue to play a large part of the growth in the European investment fund industry. Ireland is central to this development and we have worked very hard to ensure we are leaders in this space"

IHS Markit will provide benchmark CDS indices for Tabula's first ETFs. KB Associates has partnered with Tabula to support the establishment of the ETF in Ireland. KBA will also be responsible for UCITS governance services. Furthermore, KBA will provide a range of ancillary services including director services and company secretary services.

 





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HSBC is to provide custody and administration services to new exchange-traded funds (ETF) provider, Tabula Investment Management. Tabula says it is set to launch a range of unique fixed income funds targeting European institutional investors including insurance companies, pension funds, asset managers, private banks and wealth managers. Tabula Investment Management's sales team will cover the UK, Ireland, Germany, France, Switzerland, Austria, Belgium, Luxembourg, the Netherlands and the Nordics. 

Tabula will be led by Michael John Lytle as Chief Executive Officer. He was one of the founding partners of independent ETF provider Source (acquired last year by Invesco). Prior to that he spent 18 years at Morgan Stanley, mainly in fixed income. Hasan Sabri will be Chief Operating Officer. Sabri has over 30 years of experience in FinTech, asset management and banking. He has held roles as diverse as the CEO of MyInvest, COO of MoneyFarm and COO of GLG Partners (now part of Man Group).

Tabula says it will focus on fixed income supporting investors as flows into the asset class accelerate. The company believes that although fundamentals and market dynamics are positive for fixed income ETFs, the persistent innovation that ignited the equity ETF market has been lacking in this sector. As a result, the large incumbent funds continue to gather assets, but investors are hungry for new products.

Tabula will launch its first ETFs soon, providing new and more precise tools for passive credit exposure. Tabula plans to expand its offering across the asset class, moving from investment grade and high yield credit into inflation, government debt, emerging markets, bank capital, money markets, ESG strategies and Solvency II-efficient funds.

Lytle said: "Passive strategies account for only 5 percent of fixed income fund assets, compared to 30 percent for equities. We expect this gap to close, but how quickly will depend on how compelling the available funds are. There are currently over 400 fixed income ETFs in Europe, but almost half of the assets are concentrated in the top 20.  We are optimistic that delivering precise exposure and addressing specific investment needs will resonate with investors and complement existing products." 

Until Tabula receives its own authorization, it will be an Appointed Representative of Cheyne Capital, which is authorised and regulated by the Financial Conduct Authority.

HSBC is not only providing custody and administration services but has taken a holistic approach to supporting the new venture, providing a range of banking services that most institutions would reserve for larger, more established businesses.

Cian Burke, Global Head of HSBC Securities Services, said: "ETFs continue to play a large part of the growth in the European investment fund industry. Ireland is central to this development and we have worked very hard to ensure we are leaders in this space"

IHS Markit will provide benchmark CDS indices for Tabula's first ETFs. KB Associates has partnered with Tabula to support the establishment of the ETF in Ireland. KBA will also be responsible for UCITS governance services. Furthermore, KBA will provide a range of ancillary services including director services and company secretary services.

 



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