{"id":21930,"date":"2020-07-29T09:30:19","date_gmt":"2020-07-29T08:30:19","guid":{"rendered":"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/?p=21930"},"modified":"2020-07-29T10:50:44","modified_gmt":"2020-07-29T09:50:44","slug":"tabula-survey-reveals-lack-of-innovation-in-fixed-income-esg-etfs","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/co.uk\/tabula-survey-reveals-lack-of-innovation-in-fixed-income-esg-etfs\/","title":{"rendered":"Tabula survey reveals lack of innovation in fixed income ESG ETFs"},"content":{"rendered":"

Tabula. New research from specialist fixed income ETF provider Tabula Investment Management reveals that European professional investors want to see more innovation in fixed income ESG ETFs …<\/p>\n

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Sign up to our free newsletters<\/strong><\/a><\/p>\n

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Michael John Lytle<\/strong> Tabula CEO<\/strong><\/p>\n

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82% of professional investors want to see more innovation among fixed income ESG ETFs<\/strong><\/p>\n

Exclusion of the most harmful companies is the most salient product feature<\/strong><\/p>\n

Outperformance is more important than tracking, indicating that investors see ESG as an opportunity as well as a requirement<\/strong><\/p>\n

Tabula has recently signed the UN-supported Principles of Responsible Investment and is keen to understand and incorporate the views of investors as it implements those principles.<\/p>\n

\u201cWe found that 96% of investors that we surveyed are already using ESG ETFs, which is a remarkable level of penetration in only a few years,\u201d says Tabula CEO Michael John Lytle<\/strong>. \u201cHowever, in fixed income specifically, the vast majority of respondents want to see more innovation, broader coverage of exposures and more transparency around the effect of the fund\u2019s approach.\u201d<\/p>\n

The research also sheds light on specific features that professional investors look for in ESG ETFs. The top answer, cited by over 70% of respondents, was the exclusion of the most harmful companies.<\/strong><\/p>\n

\u201cThe idea of avoiding harm is clearly at the forefront of investors\u2019 minds and the exclusion of certain companies \u2013 for example, those violating the UN Global Compact or manufacturing controversial weapons \u2013 is becoming a minimum requirement,\u201d says Lytle. \u201cThis is a great starting point but not the whole story.\u201d<\/p>\n

The survey also revealed an interesting preference for outperformance potential over benchmark tracking<\/strong>.<\/p>\n

\u201cMany existing ESG ETFs are designed to closely track traditional benchmark indices,\u201d says Lytle. \u201cHowever, 75% of our respondents saw outperformance potential as important, compared to 25% preferring to minimise tracking error. This could indicate that investors are now seeing ESG as a driver of long-term performance, not just a qualitative overlay.\u201d This ties in with strong demand (63% of respondents) for more targeted products focused on issues like climate change and diversity.<\/p>\n

\u201cResponsible investing is evolving rapidly,\u201d says Lytle. \u201cThis research gives us valuable insights into the broad trends and, crucially, the different views and priorities across countries and investor types. Creating innovative ESG ETFs that meet investor needs is a challenge for providers and one that Tabula is actively embracing.\u201d<\/p>\n

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Focus on the UK<\/strong><\/p>\n

100% of UK professional investors surveyed are already using ESG ETFs<\/p>\n

Exclusion of the most harmful companies is the top priority, cited by 95% of respondents<\/p>\n

85% of respondents would like to see better corporate credit ESG ETFs<\/p>\n

Focus on Italy<\/strong><\/p>\n

100% of Italian professional investors surveyed are already using ESG ETFs<\/p>\n

Exclusion of the most harmful companies is the top priority, cited by 95% of respondents<\/p>\n

Ability to target specific issues e.g. climate change and diversity is also important<\/p>\n

Focus on Germany<\/strong><\/p>\n

95% of German professional investors surveyed are already using ESG ETFs<\/p>\n

100% would like better coverage of the different fixed income asset classes, and more than 50% want greater transparency<\/p>\n

95% see potential for outperformance as an important product feature<\/p>\n

Focus on Switzerland<\/strong><\/p>\n

100% of Swiss professional investors surveyed are already using ESG ETFs<\/p>\n

Potential for outperformance is the most valued product feature, followed by exclusion of the most harmful companies<\/p>\n

90% of respondents would like better coverage of the different fixed income asset classes<\/a><\/p>\n

Source : ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"

Tabula. New research from specialist fixed income ETF provider Tabula Investment Management reveals that European professional investors want to see more innovation in fixed income ESG ETFs …<\/p>\n","protected":false},"author":4,"featured_media":21362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[337,12],"tags":[269],"class_list":["post-21930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esg","category-etf-analysis","tag-tabula"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=21930"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21930\/revisions"}],"predecessor-version":[{"id":21931,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21930\/revisions\/21931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/21362"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=21930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=21930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=21930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}