Eldridge, a US asset management and insurance holding company with approximately $74bn in assets under management, has launched its first actively managed fixed income ETF in Europe.
The Eldridge AAA CLO UCITS ETF draws on its structured credit capabilities and is designed to provide investors and allocators with a compelling investment option when building portfolios.
In a statement, Eldridge said the strategy could address an increasing market demand for access to the asset class in an accessible ETF wrapper, in accordance with UCITS regulations, giving international investors access to USD-denominated AAA CLO liabilities without US withholding taxes.
Targeted at sophisticated investors who are not US. taxpayers, the new ETF seeks to generate current return income and capital preservation by investing in high quality US dollar-denominated AAA-rated CLO bonds.
Tarek Barbar, co-portfolio manager of the AAA CLO UCITS ETF said: “Building on Eldridge’s heritage as investment specialists in the CLO space, we are excited to introduce this new solution to investors globally.
“The Eldridge AAA CLO UCITS ETF has potential to enhance clients’ portfolios by offering consistent stable levels of floating rate income.”
The ETF listed on Deutsche Borse Xetra on 5 March and has an expense ratio of 0.35%.
