HANetf consolidates thematic ETFs over failure to gather assets

In a statement published on 24 January, the firm set out terms to merge the $7.1m Solar Energy UCITS ETF (TANN) and the $3.4m HANetf S&P Global Clean Energy UCITS ETF (ZERO) into the $24.6m iClima Global Decarbonisation Enablers UCITS ETF (CLMA).

The firm noted that since the funds’ inception in June 2021, both have failed to gather assets.

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In June 2023, HANetf reduced the total expense ratio of both funds in what was described as “an effort to incentivise investors”. However, the funds did not gather “sufficient” additional assets, and this is not expected to improve in the short- to medium-term.

The merger with CLMA has been proposed to allow investors in TANN and ZERO to retain exposure to a portfolio with a similar investment objective, as CLMA invests in companies involved in CO2 avoidance, while TANN provides exposure to companies with a focus on the solar energy industry and ZERO offers access to companies involved in global clean energy-related businesses.

CLMA is categorised as Article 9 under the Sustainable Finance Disclosure Regulation, while both TANN and ZERO are classified as Article 8.

Investors will see an increase in their cost to invest, as CLMA holds a total expense ratio of 0.65%, compared with TANN and ZERO’s respective 0.49% and 0.39% fees.

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Additionally, the firm set out plans to merge the $11.5m Procure Space UCITS ETF (YODA) into the $45.2m Future of Defence UCITS ETF (NATO), which launched in July 2023, also due to a failure to gather assets.

While YODA is focused on space-related businesses, including those using satellite technology, NATO invests in defence companies.

Investors in YODA will see a reduction in fees from the previous TER of 0.75%, to NATO’s 0.49%.

Subject to shareholder approval, both mergers are scheduled for 27 February.