PCLO leverages Seix’s long-term CLO experience
across credit cycles
Virtus Investment Partners, Inc. (NYSE: VRTS) has expanded its
offerings of distinctive, actively managed exchange-traded funds
with the introduction of the Virtus Seix AAA Private Credit CLO
ETF, (NYSE Arca: PCLO), the second ETF managed by Seix Investment
Advisors.
The Virtus Seix AAA Private Credit CLO ETF, the first ETF to
focus on private credit collateralized loan obligations (CLOs),
primarily seeks to invest in the strongest and most undervalued AAA
rated private credit CLOs and provides active management in a
transparent, liquid, and cost-effective ETF.
“Private credit CLOs offer the potential for higher income and
lower volatility versus traditional fixed income investments,
providing investors with much needed diversification and lower
correlation,” said Seix’s John Wu, CFA, portfolio manager and head
of structured credit, who manages PCLO with George Goudelias, chief
investment officer, leveraged finance, and senior portfolio
manager. “With this offering, we will continue to take a
multi-dimensional approach to portfolio management, combining
time-tested portfolio construction methodology, disciplined trading
strategies, and prudent risk management.”
Seix has significant experience in the CLO asset class, having
launched its first leveraged loan strategy under Goudelias nearly
20 years ago. Seix now manages 10 CLOs with approximately $3.4
billion in assets.
“We believe ETFs will become essential tools for investors
seeking to access the burgeoning private credit market as it
evolves,” said William J. Smalley, executive managing director,
Virtus ETF Solutions. “Innovative products like PCLO provide a
solution for investors seeking yield complements to a traditional
portfolio, emphasizing efficiency and transparency.”
Virtus ETF Solutions offers 20 actively managed and index-based
ETFs and had $2.6 billion in assets under management as of
September 30, 2024. It’s offerings in multiple asset classes
includes Virtus Seix Senior Loan ETF (SEIX), Virtus Terranova U.S.
Quality Momentum ETF (JOET) as well as ETFs managed by other Virtus
affiliates, Duff & Phelps Investment Management Co., Kayne
Anderson Rudnick, Newfleet Asset Management, and Stone Harbor
Investment Partners.
About Seix Investment Advisors
Seix Investment Advisors is an investment management boutique
and affiliated manager of Virtus Investment Partners that has been
focused exclusively on managing fixed income securities since 1992.
Seix seeks to generate competitive absolute and relative
risk-adjusted returns over the full market cycle through a
bottom-up focused, top-down aware process. Seix employs
multi-dimensional approaches based on strict portfolio construction
methodology, sell disciplines and trading strategies with prudent
risk management as a cornerstone. The firm provides investment
management services to a client base that includes endowments,
foundations, corporations, healthcare organizations, public funds,
insurance companies, and high net worth individuals, in the U.S.
and abroad.
About Virtus ETF Solutions
Virtus ETF Solutions is an ETF sponsor that offers actively
managed and index-based investment capabilities across multiple
asset classes, seeking to deliver a family of complementary ETFs
that provide investors access to differentiated investment
capabilities from select managers.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors. We
provide investment management products and services from our
affiliated managers, each with a distinct investment style and
autonomous investment process, as well as select subadvisers.
Investment solutions are available across multiple disciplines and
product types to meet a wide array of investor needs. Additional
information about our firm, investment partners, and strategies is
available at virtus.com.
Risk Considerations
Exchange-Traded Funds (ETF): The value of an ETF may be
more volatile than the underlying portfolio of securities it is
designed to track. The costs to the portfolio of owning shares of
an ETF may exceed the cost of investing directly in the underlying
securities. Collateralized Loan Obligations (CLO): The risks
of investing in CLOs include both the economic risks of the
underlying loans combined with the risks associated with the CLO
structure governing the priority of payments. Private
Credit: Private credit oriented CLOs bear the risks of the
portfolio of loans that are privately negotiated between the
borrower and a non-bank lender, including liquidity, industry,
currency, valuation, and credit risks. Credit &
Interest: Debt instruments are subject to various risks,
including credit and interest rate risk. The issuer of a debt
security may fail to make interest and/or principal payments.
Values of debt instruments may rise or fall in response to changes
in interest rates, and this risk may be enhanced with longer-term
maturities. High Yield Fixed Income Securities (Junk Bonds):
There is a greater risk of issuer default, less liquidity, and
increased price volatility related to high yield securities than
investment grade securities. Limited Number of Investments:
Because the portfolio has a limited number of securities, it may be
more susceptible to factors adversely affecting its securities than
a portfolio with a greater number of securities.
Non-Diversified: The portfolio is not diversified and may be
more susceptible to factors negatively impacting its holdings to
the extent the portfolio invests more of its assets in the
securities of fewer issuers than would a diversified portfolio.
Market Price/NAV: At the time of purchase and/or sale, an
investor's shares may have a market price that is above or below
the fund's NAV, which may increase the investor's risk of loss.
Market Volatility: The value of the securities in the
portfolio may go up or down in response to the prospects of
individual companies and/or general economic conditions. Local,
regional, or global events such as war, terrorism, pandemic, or
recession could impact the portfolio, including hampering the
ability of the portfolio’s manager(s) to invest its assets as
intended.
Prospectus: For additional information on risks, please
see the fund’s prospectus.
The J.P. Morgan CLOIE AAA Total Return Index (USD) is
designed to track the performance of broadly-syndicated, arbitrage
floating-rate U.S. CLO debt from AAA tranches. The index is
calculated on a total return basis with dividends reinvested. The
index is unmanaged, its returns do not reflect any fees, expenses,
or sales charges, and is not available for direct investment.
Please consider the Fund’s objectives, risks, charges, and
expenses before investing. Contact us at 1.800.243.4361 or visit
virtus.com for a prospectus, which contains this and other
information about the Fund. Read the prospectus carefully before
investing.
Not FDIC Insured. May Lose Value Not Bank Guaranteed
ETFs distributed by VP Distributors, LLC, member FINRA
and subsidiary of Virtus Investment Partners, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20241203477671/en/
Media Relations Contacts Zachary Allegretti II (973)
214-5581 zallegrettiII@jconnelly.com
Josh Silvia (860) 503-1327 josh.silvia@virtus.com
Grafico Azioni Virtus Investment Partners (NYSE:VRTS)
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