PGIM, the global asset management business of US-based Prudential Financial, Inc, has announced the launch of the UCITS PGIM Global AAA CLO Strategy with $25 million of PGIM seed capital. The Strategy complements PGIM’s $77 billion collateralised loan obligations (CLO) platform and aligns with PGIM’s long-term growth ambitions.
The Strategy focuses on the senior debt tranches (those rated AAA) of U.S. and European CLOs, offering a broader set of global investors access to the CLO market which has been historically limited to institutional investors. The Strategy can invest up to 20% of its assets in debt tranches rated AA. Rising investor confidence and appetite for high-quality, yield-enhancing fixed income strategies underscores the structural shift in how investors across regions are allocating to CLOs within regulated frameworks.
While the UCITS strategy is a new offering, PGIM has managed CLO allocations in client portfolios since 2009 and manages the second-largest AAA CLO ETF in the U.S., with over $3 billion in assets under management.
Edwin Wilches, Managing Director and Co-Head of PGIM’s Securitized Products team, said: “We are launching this Strategy because there is demand from a broader set of clients who have historically had less access to this asset type. AAA-rated CLO tranches offer a rare combination of high credit quality and attractive yields. It is expected that this strategy may suit investors who seek income opportunities within a well-defined regulatory framework.”
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The Strategy’s performance is benchmarked against the ICE BofA US 3-Month Treasury Bill Index and is managed by PGIM’s Securitized Products Team, led by Edwin Wilches and Gabriel Rivera, Managing Director and Co-Head of PGIM’s Securitized Products team; and Connor Byrnes, Vice President on PGIM’s Securitized Products team—seasoned professionals with an average of 16 years of investment experience. Supporting the strategy is a dedicated team of 13 investment professionals on the Global CLO Tranche Investment Team.
