Barings has partnered with Pacer ETFs to sub-advise two fixed-income exchange-traded funds (ETFs) focused on collateralised loan obligations (CLOs) and secured credit.
According to the firms, the vehicles will invest in secured high-yield bonds, senior secured loans and CLO debt.
The launch comes amid growing investor demand for actively managed fixed-income ETFs and alternative strategies, Barings said.
“We are pleased to partner with Pacer to expand the distribution of our CLO and secured credit capabilities through these upcoming ETFs, providing an active-management approach to building income-oriented portfolios,” said Mike Freno, chairman and chief executive of Barings.
Subject to regulatory approval, the products will be managed by Barings’ Global High Yield and CLO platform, which oversees $95bn (£70.5bn) in assets across high-yield bonds, senior secured loans and CLOs.
Barings manages $481bn in assets, while Pacer ETFs, a strategy-driven ETF provider, oversees more than $40bn in assets.
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“Pacer is committed to delivering differentiated investment strategies that address evolving client needs,” said Sean O’Hara, president of Pacer ETF Distributors. “Barings has significant experience investing across global credit markets, and partnering with Pacer creates an opportunity to provide that experience through ETF solutions.”
The announcement follows Barings’ launch of its first infrastructure collateralised loan obligation vehicle in January, a $508m transaction.
The launch of Barings Infrastructure CLO Ltd. 2025-I came after the global asset manager introduced Europe’s first multicurrency private credit CLO in October last year.
