Reckoner Capital Management, an ETF provider whose product line targets the collateralized loan obligation (CLO) space, is expanding its lineup with four new funds to increase distribution flexibility.
Prior to the launch, Reckoner’s two funds, the Reckoner Yield Enhanced AAA CLO ETF (RAAA ) and the Reckoner BBB-B CLO ETF (RCLO), targeted those looking to diversify their monthly income with CLO exposure. These new funds appeal to investors who want to mitigate their tax liabilities by limiting monthly payouts:
- The Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR): provides leveraged exposure to AAA-rated CLO bonds while compounding value through distribution minimization and continuous reinvestment.
- The Reckoner Yield Enhanced AAA CLO Annual ETF (RAAY): provides leveraged exposure to AAA-rated CLOs while limiting distributions to a single annual payment.
- The Reckoner BBB-B CLO Reinvesting ETF (RCLR): provides exposure to primarily BBB- and BB-rated CLO bonds while compounding value through distribution minimization and continuous reinvestment.
- The Reckoner BBB-B CLO Annual ETF (RCLY): provides exposure to primarily BBB- and BB-rated CLO bonds while limiting distributions to a single annual payment.
“We heard from many investors who want exposure to CLOs over the long term that they would prefer to remain fully invested rather than receiving distributions on a monthly basis,” said Reckoner co-founder and CEO John Kim. "Our newly launched reinvesting and annual distribution CLO ETFs give investors the flexibility to match their cash flow requirements to their investment horizons and to recognize distributions as taxable income when the shares are sold. As CLO specialists with more than a decade of experience and longstanding industry relationships, we have the know-how to innovate new CLO ETF structures that provide investors with alternative paths to achieving their specific investment objectives.”
Active Expertise in an ETF Wrapper
Increasingly, investors are turning to active funds — evidenced by a record number of new active ETF launches in 2025. A new year brings more market uncertainty, which makes active management even more imperative. That’s especially the case in the CLO market, which carries its own unique set of complexities and idiosyncratic risks. Reckoner’s actively managed funds give its portfolio managers the autonomy to adjust the holdings as necessary to fit current market conditions. These new funds tap into the experience of the funds’ portfolio managers who know how to navigate a nuanced CLO market.
In a time when the fixed income market faces macroeconomic uncertainties ahead, the launch of these new funds is timely. Rather than rely on traditional sources such as bonds, income seekers can diversify their streams with CLOs whether they’re looking for long-term wealth building, capital preservation, and/or income. Reckoner continues to make the CLO market accessible with the expansion of its lineup that features the flexibility, tax efficiency, and cost-efficiency of an ETF wrapper.
“ETFs offer a very accessible way to invest in CLOs, yet ETFs can often have ‘a one-size-fits-all’ feel with little flexibility to accommodate individual needs,” said Richard Hoge, managing director at Reckoner. "As the sole manager of the entire suite of funds and their underlying assets, we can provide investors distribution options with an efficient fee structure that does not require compensation for multiple managers. We’re excited to make high quality alternative investments like CLOs available to ETF investors through actively managed funds that help them meet their financial goals.”
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