PGIM, the global asset management business of US-based Prudential Financial Inc, has launched a Ucits-compliant Global AAA CLO Fund with $25 million of the firm’s own seed capital.
The fund, which complements PGIM’s $77 billion collateralised loan obligations (CLO) platform, will focus 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% of its assets in debt tranches rated AA. Rising investor confidence and appetite for high-quality, yield-enhancing fixed income strategies underscore the structural shift in how investors across EMEA are allocating to CLOs within regulated fund frameworks.
Edwin Wilches, managing director and co-head of PGIM’s Securitized Products team, said: “We are launching this fund 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 product may suit investors who seek income opportunities within a well-defined regulatory framework.”
The fund, classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), 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, it will be registered in the UK, Italy (retail) and Switzerland, subject to regulatory approval.
