Morgan Stanley Investment Management has added an active senior loan ETF to its lineup.
The Eaton Vance Floating-Rate ETF (EVLN) is an actively managed strategy providing access to loan investing in a tradable format. The fund launched on the NYSE on February 8.
EVLN combines MSIM’s bottom-up approach with the additional tax benefits and intraday liquidity provided by the ETF structure. That is according to Andrew Sveen, portfolio manager, head of floating-rate loans and chairman of MSIM Fixed Income, said in a statement.
The ETF seeks to provide a high level of current income through a portfolio comprising floating-rate credit investments. The majority of EVLN’s holdings will be the floating-rate corporate term loans at the center of the team’s investment capability. Supporting allocations to high ield bonds and collateralized loan obligation debt tranches will broaden the opportunity set.
The New Senior Loan ETF Will Tap Experienced Management
MSIM’s investment team is dedicated exclusively to loan management and will manage the new active senior loan ETF. The team will provide the same approach to credit management and portfolio construction as it does with mutual funds.
“Eaton Vance has extensive experience managing floating-rate investments. However, until now, ETF-minded advisors did not have access. It’s great to see this product development,” said Todd Rosenbluth, head of research at VettaFi.
See more: Eaton Vance Loans Expertise to the ETF Market
Anthony Rochte, global head of ETFs at MSIM, said the launch of EVLN reflects the firm’s differentiated investment capabilities and client-focused approach.
“A pioneer in senior loan investment management, the industry-leading team established its loan platform thirty-five years ago and today manages over $30 billion in client assets globally,” he said in a statement. “This strategy makes use of that deep loan market expertise and the in-demand ETF structure to meet the needs of a broader range of income clients.”
EVLN is the 12th ETF that MSIM has brought to market since the launch of the issuer’s ETF platform last February.
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