Barings and Pacer ETFs to Launch Actively Managed Fixed Income ETFs Targeting CLOs and Secured Credit
Event summary
- Barings partners with Pacer ETFs to sub-advise two actively managed fixed income ETFs focused on CLOs and secured credit opportunities.
- ETFs will be managed by Barings’ Global High Yield and CLO platform, overseeing $95B+ in assets.
- Pending regulatory approval, the ETFs are expected to launch in mid-2026.
- Barings manages $481B in global alternative assets as of March 2026.
The big picture
The partnership reflects the growing demand for actively managed fixed income ETFs, particularly in niche areas like CLOs and secured credit. Barings, with its substantial AUM and expertise in global credit markets, aims to leverage Pacer ETFs' distribution capabilities to expand its reach. This move aligns with broader industry trends toward alternative income strategies and the increasing popularity of ETFs as investment vehicles.
What we're watching
- Regulatory Approval
- The pace at which the SEC approves the ETFs will determine their launch timeline and market readiness.
- Market Demand
- Whether investor interest in actively managed fixed income ETFs and alternative income strategies sustains the expected growth.
- Competitive Positioning
- How Barings and Pacer ETFs differentiate these products in a crowded ETF market.
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