PGIM initiates a worldwide Collateralized Loan Obligation fund
In July 2025, PGIM, a global asset management business of Prudential Financial Inc, launched a UCITS-compliant Global AAA CLO Fund. This fund offers a unique opportunity for non-institutional investors, including intermediaries and the wealth channel, to gain access to the historically limited Collateralised Loan Obligation (CLO) market [1][2][3][4].
The fund, led by Edwin Wilches, managing director and co-head of PGIM's Securitized Products team, is focused on investing in the senior debt tranches (AAA-rated) of US and European CLOs. It can also invest up to 20% in AA-rated debt tranches, providing a balanced approach to risk and return [1][3].
The rise in investor confidence and appetite for high-quality, yield-enhancing fixed income strategies is driving this structural shift. The new fund offers a combination of high credit quality and attractive yields, making it an attractive option for investors seeking income opportunities within a well-defined regulatory framework [1][2][3].
The fund is classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), reflecting PGIM's commitment to sustainable investing. It is domiciled in Luxembourg and registered for sale in various European and Asian markets, including Luxembourg, the Netherlands, Denmark, Norway, Finland, France, Italy (institutional and retail), Spain, Germany, Sweden, Singapore, the UK (subject to regulatory approval), and Switzerland (subject to regulatory approval) [1][3].
The fund's launch marks an expansion of access to the CLO market for a broader set of clients who have historically had less access to this asset type. This move is expected to suit investors who seek income opportunities within a well-defined regulatory framework [1][3].
With an initial capital of $25 million from PGIM itself, the fund complements PGIM’s existing $77 billion CLO platform. The launch of the fund signifies a shift in how investors in Europe, the Middle East, and Africa (EMEA) are allocating to CLOs within regulated fund structures, providing a potential early-mover opportunity for investors in these regions and potentially in Asia [1][3].
References:
[1] PGIM. (2025). PGIM Launches UCITS-Compliant Global AAA CLO Fund. [Online]. Available: https://www.pgim.com/news/pgim-launches-ucits-compliant-global-aaa-clo-fund
[2] InvestmentEurope. (2025). PGIM launches UCITS-compliant Global AAA CLO Fund. [Online]. Available: https://www.investmenteurope.net/news/pgim-launches-ucits-compliant-global-aaa-clo-fund/001494793.article
[3] Financial News. (2025). PGIM launches UCITS-compliant Global AAA CLO Fund. [Online]. Available: https://www.fnlondon.com/articles/pgim-launches-ucits-compliant-global-aaa-clo-fund-20250701
The new fund, led by Edwin Wilches, is an expansion of access for various investors to the historically limited CLO market, as it is compliant with UCITS regulations and focuses on investing in high-quality AAA-rated debt tranches of US and European CLOs. Investors seeking income opportunities within a well-defined regulatory framework may find this fund attractive, as it offers a combination of high credit quality and attractive yields.
