M&G Investments has launched an actively-managed Exchange Traded Fund (ETF) investing in European collateralised loan obligations (CLOs).
The fund, the M&G AAA EUR CLO Active UCITS ETF, has launched with €200m (£173m) of capital, including €180m from external investors, and it aims to provide investors with targeted exposure to European CLOs.
The move extends M&G’s active ETF platform into a specialist area of fixed income where active management, credit selection and structural analysis are essential to driving returns to investors.
Read more: Muzinich launches European CLO ETF
The strategy draws on M&G’s 25 years’ experience in private and structured credit and is supported by a dedicated in-house credit research team. M&G said the launch reflects its focus on broadening investor access to its active asset management capabilities and long-standing track record across credit markets.
European CLOs in an ETF format offer investors an efficient way to access the senior loan market through liquid, publicly traded securities. With strong structural protections and a floating‑rate profile, AAA CLOs can provide attractive income with limited interest rate sensitivity and have proven resilient across market cycles,” said Matthew Wardle, portfolio manager of the fund.
It comes after Muzinich launched its first European exchange-traded fund (ETF) focusing on expanding access to CLOs earlier this week.
