The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

PGIM
PGIM, the global asset management business of US-based Prudential Financial, has launched the UCITS PGIM Global AAA CLO Fund with $25 million of PGIM seed capital. The fund complements PGIM’s $77 billion collateralised loan obligations (CLO) platform and aligns with PGIM’s long-term growth ambitions.

The fund is registered for sale in Luxembourg (domicile), the Netherlands, Denmark, Norway, Finland, Luxembourg, France, Italy (institutional), Spain, Germany and Sweden, and as a restricted scheme in Singapore. In addition, the fund will be registered in the UK, Italy (retail) and Switzerland, subject to regulatory approval.

It focuses on the senior debt tranches (those rated AAA) of US and European CLOs, offering intermediaries and the wealth channel – in addition to institutional investors – access to the CLO market, which has been historically limited to institutional investors. The fund can invest up to 20 per cent of its assets in debt tranches rated AA. Rising investor confidence and an appetite for high-quality, yield-enhancing fixed income strategies underscore the structural shift in the way investors across EMEA are allocating to CLOs within regulated fund frameworks.

The fund’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, Gabriel Rivera, managing director and co-head of PGIM’s Securitized Products team, and Connor Byrnes, vice president on PGIM’s Securitized Products team.

The fund is classified as an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR). The investment team incorporates analysis of environmental, social and governance (ESG) factors into its investment process.