Barings, Pacer Partner on CLO-Focused Fixed Income ETFs

Barings and Pacer ETFs have partnered to launch two actively managed fixed-income exchange-traded funds focused on collateralized loan obligations and secured credit investments.

Pending regulatory approval, Barings will serve as sub-adviser for the funds, which are expected to invest in CLO debt, senior secured loans, secured high-yield bonds and other credit opportunities. The ETFs will be managed by Barings’ Global High Yield and CLO platform, which includes more than 75 investment professionals overseeing over $95 billion in assets across high-yield bonds, senior secured loans and CLOs.

“We are pleased to partner with Pacer to expand the distribution of our CLO and secured credit capabilities through these upcoming ETFs, providing an active-management approach to building income-oriented portfolios,” said Mike Freno, chairman and CEO of Barings.

The collaboration reflects continued growth in the actively managed ETF market, where asset managers are increasingly packaging institutional investment strategies into more accessible and tax-efficient vehicles.

“Pacer is committed to delivering differentiated investment strategies that address evolving client needs,” said Sean O’Hara, president of Pacer ETF Distributors. “Barings has significant experience investing across global credit markets, and partnering with Pacer creates an opportunity to provide that experience through ETF solutions.”

Investor demand for CLOs and secured credit has risen in recent years as higher interest rates have boosted yields and increased interest in floating-rate securities that can offer protection against interest-rate volatility.

The proposed funds have been filed with the U.S. Securities and Exchange Commission and are expected to launch following regulatory and customary approvals.