THE AAA CLO UPGRADE

High-quality CLOs offer a default-free history of attractive risk-adjusted returns

WHY CLOS BELONG IN YOUR PORTFOLIO

Allocating to collateralised loan obligations, or CLOs, can improve strategic positioning by adding resilient assets with a history of outperformance and low correlations versus traditional fixed income. Their attractive yields, floating rate coupons and position at the top of the capital stack contribute to a compelling case amid uncertainty surrounding rates and economic growth. Moreover, with a default-free track record, CLOs from the AA and AAA tranches offer exceptional stability.

A clo fund committed to quality

The PGIM Global AAA CLO Fund is an actively-managed global fund that provides diversified exposure to U.S. and European investment-grade CLOs. Committed to the highest quality standards, the fund invests in AAA and AA-rated CLO tranches, which offer the most favourable liquidity and default profiles. Actively managed for enhanced yield, the fund targets stable income with low credit risk using a bottom-up, relative-value approach.​

EFFICIENT ACCESS TO AN INSTITUTIONAL MARKET

A best-in-class approach to the $1.4 trillion global CLO market1.

ASSET CLASS INNOVATION

One of the first active UCITS funds to offer access to a truly global opportunity set.

COMPELLING CREDIT CHARACTERISTICS

Stable income, low risk and strong structural protections.

LONGSTANDING EXPERTISE

An experienced CLO manager able to source assets at scale.

 

PGIM GLOBAL AAA CLO FUND

Access a historically institutional CLO market with the PGIM Global AAA CLO Fund, one of the first UCITS-compliant strategies to offer dedicated access to this asset class globally.

INSTITUTIONAL-QUALITY ACCESS TO CLO OPPORTUNITIES

With $862 million in total assets under management, PGIM’s fixed income platform is one of the industry’s largest and most experienced active managers, offering institutional-grade access to CLO opportunities through its AAA CLO strategy, managed by a dedicated team of over 30 professionals.

GLOBAL REACH 

Operating across the U.S. and Europe, PGIM manages $138 billion in securitised products. As the world's fourth-largest CLO manager2, its team of more than 30 investment professionals averages 15 years of experience.

SOURCING STRENGTH

As a top 10 issuer in the JPM CLOIE Index3, our ability to execute large and complex trades provides a distinct sourcing advantage.

DEEP MARKET ACCESS

A longtime participant in both primary and secondary markets, relationships, resources and expertise enable us to structure bespoke solutions and negotiate terms.

Source: PGIM. AuM & staffing as of 31 March 2025.  1. Source: PGIM, CLO market data as of 31 January 2025  2.. Source: Creditflux, 30 June 2024.  3. Source: JPM CLOIE, as of 28 Feb 2025.​

Bank Loans Risk: The Fund’s ability to receive payments of principal and interest and other amounts in connection with loans (whether through participations, assignments or otherwise) will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or principal payments on a loan because of a default, bankruptcy or any other reason may adversely affect the income of the Fund and reduce the value of its assets.

Call Risk: If an issuer exercises its right to redeem a security prior to its maturity (a call), the Fund may not recoup the full amount of its initial investment and may be forced to re-invest in lower-yielding securities, securities with greater credit risks or with other less favourable features.

Credit Risk: The value of debt securities may be adversely impacted by the erosion in the ability of the issuer to pay the amounts of interest and principal owed as they become due.

Emerging Market Risk: The Fund invests in emerging markets, which may experience political, market, social, regulatory, and/or economic instabilities. These instabilities may reduce the value of the Fund’s investments.

Securitised Product Risk: Securitised products may be less liquid than other debt securities, may be prone to substantial price volatility and are subject to issuer repayment, counterparty and credit risk. Securitised products carry certain additional risks which may adversely impact the return on the securities, including: the possibility that distributions from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may decline in value or default; and the possibility that the securitised products are subordinate to other classes.

Sovereign Debt Risk: Sovereign debt risk is the risk that the governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/ or interest when due in accordance with the terms of such debt, due to factors related to its cash flow, its foreign reserves and political constraints, among others. If a governmental entity defaults, there may be few or no effective legal remedies for collecting on such debt.

Custodial Risk: Assets which are traded in markets where custodial and/or settlement systems are not fully developed may be exposed to risk in circumstances where the custodian will have no liability. 

Junk Bonds: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors. 

Political Risk: The value of the Fund's investments may be affected by uncertainties such as international policy developments, social instability and changes in government policies. This can result in more pronounced risks where conditions have a particular impact on one or more countries or regions. 

Counterparty Risk: Risk of material investment exposure through contracts with a third party. 


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