M&G launches an active ETF of European CLOs with an initial 200 million euros
24 JUN, 2026
M&G Investments has launched a new actively managed exchange-traded fund specializing in loan collateralized obligations (CLO) issued in Europe, in a move that strengthens its active ETF platform and expands its presence in a very specific fixed income segment. The vehicle, named M&G AAA EUR CLO Active UCITS ETF, debuts with an initial capital of 200 million euros, of which 180 million come from external investors.
The new fund offers specific exposure to European CLO titles, a market that allows access to diversified portfolios of senior secured loans granted to companies. According to the information provided by the manager, this type of asset can provide attractive returns compared to other instruments with a similar credit rating.
Another differential element of this type of asset is its floating interest profile, a feature that, according to M&G, can be especially useful in environments marked by interest rate volatility. With this launch, the entity seeks to bring investors a strategy focused on a fixed income niche where active management, corporate debt selection, and structural analysis play a key role in generating profitability.
Experience in credit and focus on professional investors
M&G supports this strategy with its 25 years of experience in private and structured credit, in addition to the backing of an internal team specialized in corporate debt analysis. The firm emphasizes that the CLO market presents relevant differences in aspects such as structure, documentation, underlying guarantees, and management approach, factors that, in its opinion, make this universe a fertile ground for well-resourced active managers to identify relative value.
The manager frames this launch within its strategy to expand investors' access to its active management capabilities and its track record in credit markets. The fund is aimed at professional investors seeking differentiated exposure within fixed income and is listed on the London Stock Exchange, on Frankfurt's Xetra and on Milan's Borsa Italiana.
The demand for specific exposure to European CLOs is increasing and there are investors looking for specialized strategies. It is a launch faithful to our goal of expanding access to M&G's investment capabilities, especially through ETF structures that provide a liquid and efficient route for investors.
Neil Godfrey, global head of the M&G Investments Client Group
European CLO issuances in ETF format offer investors an efficient way to access the senior loan market through listed and liquid securities. Thanks to strong structural protections and a floating rate profile, AAA-rated CLOs are capable of generating attractive returns with little sensitivity to interest rates, and have proven their resilience throughout different market cycles.
Matthew Wardle, portfolio manager of the M&G AAA EUR CLO Active UCITS ETF
