Muzinich launches AAA CLO UCITS ETF for short-duration income

Muzinich & Co has launched the Muzinich AAA CLO UCITS ETF, the firm’s first European exchange-traded fund. The ETF provides direct exposure to AAA-rated collateralised loan obligation bonds and targets short-duration, floating-rate, investment-grade income.

The actively managed UCITS ETF focuses on AAA CLO tranches, offering senior, structurally protected access to diversified loan cash flows. The fund uses floating-rate coupons and aims for negligible duration to limit sensitivity to changes in interest rates.

Portfolio construction will emphasise credit selection and risk control, with managers retaining discretion to allocate across eligible AAA CLO bonds. The UCITS format provides daily liquidity and transparency intended to make the strategy available across retail and institutional channels.

The ETF launched on Waystone’s white-label platform and listed initially on Xetra in Frankfurt. The total expense ratio is 25 basis points. Distribution will cover the UK, Austria, Belgium, Germany, France, Italy, Spain and Singapore. Waystone supplies the UCITS framework along with regulatory oversight, risk management and operational support.

Muzinich pointed to higher policy rates and economic uncertainty as factors driving demand for short-duration income solutions. The firm said CLO issuance reached record levels in 2025 and described the European CLO ETF market as less developed than the US market.

Muzinich set out its relevant experience in the area: more than 20 years in short-duration corporate credit, leveraged loan management since 2016, about USD 3.5 billion of structured and managed CLOs, and investments in AAA CLO bonds since 2019.

Hugo Wheeler, Muzinich’s country manager, commented that the ETF provides access to high-quality, floating-rate credit with a focus on capital preservation and transparency. Portfolio manager Sam McGairl highlighted the team’s experience across structured credit, leveraged loans and CLO structuring. Global Head of Investments Tatjana Greil-Castro said the product complements the firm’s existing UCITS activities. Paul Heffernan, CEO of Waystone ETFs, described the platform as enabling specialist managers to bring regulated ETF strategies to market efficiently.