Bringing you live news and features since 2006 

Panagram launches actively managed CLO ETF


Panagram Structured Asset Management, a USD13.5 billion credit asset manager and a subsidiary of Eldridge, has launched its first ETF: Panagram BBB-B CLO ETF (NYSE: CLOZ).

The actively managed fund invests in Collateralized Loan Obligations (CLOs), which are designed to offer compelling risk-adjusted exposure to corporate credit. The firm writes that CLOs often have historically provided higher yield than similarly rated corporate bonds and benefit from structural rules that may benefit investors from credit loss. Cycle-tested and resilient, CLOs are backed by senior loans that sit at the top of the corporate capital structure and are secured by corporate assets, the firm says.

Despite growing to USD1 trillion in size, the CLO market requires expertise to navigate, Panagram says, describing itself as a CLO investment specialist, managing one of the largest portfolios of CLO debt and majority CLO equity. The Panagram team has extensive experience in originating, structuring, monitoring, and investing in the CLO market, the firm says.  Due to Panagram’s long-standing relationships in the institutional CLO market, its move into the ETF space enables access to assets that have the potential to offer monthly income while diversifying away from stocks and bonds.

“Our goal is to provide investors with a liquid alternative to traditional fixed income with attractive structural features and competitive yield,” says John Kim, CEO of Panagram and Portfolio Manager of CLOZ. “We recognise how difficult 2022 was, and the historical outperformance of CLO tranches versus other corporates led us to create this innovative floating-rate product for the retail investor.  We are excited to launch CLOZ, which seeks to democratise CLO exposure and provide investors with the added benefit of expert oversight.”

The portfolio of CLOZ will primarily comprise BBB and BB rated CLO bonds and is expected to pay a monthly dividend.  Historically, the firm explains that CLO bonds rated BBB and BB not only tend to provide higher current yield than comparable credit products but also maintain low correlations to public debt and equity markets, making, the firm says, CLOZ a potential portfolio diversifier within today’s volatile market environment.

CLOZ is listed on the NYSE and has an expense ratio of 0.50 per cent.

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by