Franklin Templeton Launches YCLO, an Actively Managed Investment Grade CLO ETF

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Franklin Templeton, a global investment leader, today announced the launch of the Franklin BSP CLO ETF (YCLO or the Fund), an actively managed CLO ETF designed to seek capital preservation and current income by investing predominantly in investment grade collateralized loan obligation (CLO) debt tranches across U.S. and European markets. The Fund is managed by Franklin Advisers, Inc., with sub-advisory services provided by Benefit Street Partners (BSP), Franklin Templeton’s alternative credit specialist investment manager. The Fund draws on the scale and depth of BSP’s Structured Credit platform, which was founded in 2009 and manages over $9 billion of AUM. The strategy is led by Cathy Bevan and Brandon Chao, who each have more than 20 years of industry experience and have worked together for nearly a decade. The team invests using rigorous credit underwriting, portfolio construction, and active risk management. “YCLO provides access to a compelling institutional asset class that offers floating-rate income, structural protections, and diversification potential within traditional fixed income portfolios,” said Cathy Bevan, Global Head of BSP Structured Credit. “What differentiates YCLO is the ability to invest dynamically across both U.S. and European CLO markets. We believe our global presence gives us a broader opportunity set and a deeper relative value perspective.” “The CLO market and its investor base have continued to grow, while performance across CLO securities has become more differentiated in today’s market environment,” said Brandon Chao, CFA, Portfolio Manager, BSP Structured Credit. “This creates opportunities for BSP to apply its global relative value approach and active risk management within an ETF structure.” “We are proud to bring BSP’s first ETF to market and expand Franklin Templeton’s ETF platform into CLOs,” said Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets at Franklin Templeton. “YCLO combines BSP’s deep CLO expertise with Franklin Templeton’s scale, distribution reach and ETF capabilities, giving advisors and investors access to an actively managed approach to CLO debt. As market conditions continue to evolve, we believe strategies like YCLO can play an important role in helping clients access differentiated sources of income through a familiar and efficient ETF structure.” For more informatio...

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