Corporate credit manager Muzinich has launched its first European exchange-traded fund (ETF), Muzinich AAA CLO UCITS ETF, with the goal of expanding access to its established loans, collateralised loan obligations (CLOs) and short duration investment grade capabilities.
The ETF will provide investors with conservatively positioned, investment-grade income through exposure to AAA-rated CLO bonds, offering senior, structurally protected access to diversified loan cash flows. The strategy, which is underpinned by floating-rate coupons, will aim to deliver resilient income exceeding that available from money markets or short-term government bonds, while limiting sensitivity to interest rate movements.
Muzinich AAA CLO UCITS ETF will be available to investors in the UK, Austria, Belgium, Germany, France, Italy, Spain and Singapore.
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The firm said higher policy rates and economic uncertainty are spurring investor interest in high-quality, short-duration, income-generating assets.
“Investors are increasingly seeking cash plus income solutions that can navigate higher-for-longer rate environments,” said Hugo Wheeler, country manager at the firm. “This ETF provides access to high-quality, floating-rate credit with a strong focus on capital preservation and transparency.”
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Muzinich has managed leveraged loans since 2016, structured and managed approximately $3.5bn (£2.6bn) of CLOs and invested in AAA CLO bonds since 2019.
Muzinich’s portfolio manager Sam McGairl said the new ETF allows clients to access the firm’s expertise through a simple, liquid and transparent vehicle. It will be actively managed, with the UCITS ETF format providing daily liquidity, transparency and ease of access, allowing investors to integrate the strategy efficiently within portfolios across distribution channels.
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“CLOs represent one of the most compelling opportunities in credit today, and we are delighted to have supported Muzinich in making this strategy accessible to investors in an efficient, regulated ETF structure,” sad Paul Heffernan, chief executive of Waystone ETFs.
The ETF is available on the Waystone white label platform, providing a robust UCITS framework with full regulatory oversight, risk management and operational support, ensuring a transparent and efficient structure for investors.
