CLOX seeks consistent return income with
limited downside risk
NEW YORK, July 19, 2023 /PRNewswire/ -- Panagram Structured
Asset Management ("Panagram"), a $14.7+ billion credit asset
manager specializing in collateralized loan obligations ("CLOs"),
announced the launch of its second ETF: Panagram AAA CLO ETF (NYSE:
CLOX).
CLOX prioritizes capital preservation by investing in AAA-rated
CLOs. This sector of the corporate credit market has a
long-standing, robust historical track record, with no AAA-rated
bond defaults in over 25 years. AAA-rated CLOs have a first
priority on the interest and principal from underlying pools of
senior secured loans. With CLOX, investors can gain access to a
diverse pool of AAA-rated CLO bonds, which can offer higher yields
than other similarly rated investments. Additionally, AAA-rated CLO
bonds are less correlated to traditional stocks and bonds than
other credit assets.
Panagram believes the CLO structure provides the best exposure
to the $1.4 trillion senior secured
loan market. CLOs have been a traditional institutional-only asset
until recently, but investors can now enjoy access to the asset
class in an accessible ETF wrapper.
Due to the complexity and specialized nature of the CLO bonds,
CLOX requires active management expertise and scale to perform.
Panagram is an investment specialist in this space, managing a
large portfolio of CLO bonds. Panagram's long-standing
relationships within the institutional CLO market can position CLOX
for preferential asset access.
"At Panagram, we have established ourselves as investment
specialists in the CLO space, and the launch of CLOX reflects our
commitment to providing investors with attractive investment
opportunities," said John Kim, CEO
of Panagram and Portfolio Manager of CLOX. "CLOX is designed to be
a capital preservation vehicle, offering investors the potential
for consistent monthly income and limited downside risk."
Key features of CLOX include:
Capital Preservation: CLOX can provide investors access
to high-quality investments. We believe that CLO AAAs are
high-quality investments with robust historical performance and a
zero-loss record.
Potential for Higher Income: CLOX is expected
to pay a monthly dividend to investors, offering consistent
income.
Diverse Exposure: CLOX exposes investors to a
diverse portfolio of industries, companies, and institutional loan
managers.
Low Correlation: CLO AAA can offer low correlation
to public bond and equity markets.
Active Management by CLO Experts: CLOX sets itself
apart from the competition through Panagram's highly skilled team
of CLO specialists, leveraging its extensive knowledge and insights
to maximize potential returns and mitigate risks.
CLOX is listed on the NYSE and has an expense ratio of 0.20%. A
portion of CLOX's management fees will be donated to Mosholu
Montefiore Community Center in furtherance of Panagram's efforts to
drive real change in local New York
City communities.
About Panagram
Panagram, a subsidiary of Eldridge, is a $14.7+ billion
structured credit asset manager specializing in CLO, ABS, and CRE
markets. Panagram's investment team has been managing structured
credit assets for Eldridge and its affiliates since 2014. Panagram
officially launched in 2021 and has grown to become one of the
largest investors in CLO debt and CLO majority equity. For more
information, please visit p-gram.com
Important Disclosures
Past performance is not indicative of, nor a guarantee of,
future performance.
An investor should consider the Fund's investment objective,
risks, charges, and expenses carefully before investing. The
prospectus contains this and other information about the Fund. See
CLOX's website for a prospectus: www.cloxfund.com.
Please read carefully before investing.
Important Risks
CLO Risk . The risks of investing in CLO securities
include both the credit risk associated with the underlying loans
combined with the risks associated with the CLO structure governing
the priority of payments (and any legal and counterparty risk
associated with carrying out the priority of payments). CLOX
intends to invest primarily in AAA-rated tranches (or equivalent
ratings by a NRSRO); however, these ratings do not constitute a
guarantee of credit quality and it is possible that under stressed
market environments these tranches could experience substantial
losses due to actual defaults, write-downs of the equity or other
subordinated tranches, increased sensitivity to defaults due to
collateral default and impairment of subordinate tranches, market
anticipation of defaults, and general market aversion to CLO
securities as an asset class. The most common risks associated with
investing in CLOs are interest rate risk, credit risk, liquidity
risk, prepayment risk (i.e., the risk that in a declining interest
rate period CLO tranches could be refinanced or paid off prior to
their maturities and the Fund would then have to reinvest the
proceeds at a lower rate), and the risk of default of the
underlying assets.
CLOX is a recently organized investment company with no
operating history. As with all ETFs, shares of CLOX may be bought
and sold in the secondary market at market prices. Although it is
expected that the market price of shares of CLOX will approximate
the intraday value of CLOX's holdings used to calculate its NAV,
there may be times when the market price is more than the intra-day
NAV (premium) or less than the intra-day NAV (discount), which may
result in a widening of the bid and ask spread, due to supply and
demand of shares or during periods of market volatility. This risk
is heightened in times of market volatility, periods of steep
market declines, and periods when there is limited trading activity
for shares in the secondary market, in which case such premiums or
discounts may be significant. Unlike other ETFs, CLOX expects to
affect most of its creations and redemptions primarily for cash,
rather than in-kind securities. Cash purchases and sales may cause
the Fund to incur portfolio transaction fees, gains or losses on
the sales, or charges or delays in investing the cash that it would
otherwise not incur if a purchase or sale was made on an in-kind
basis. The Fund's investment in debt securities may subject it to
liquidity risk, interest rate risk, floating-rate obligations risk,
call risk, and extension risk.
Distributor: Quasar Distributors, LLC.
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SOURCE Panagram Structured Asset Management