CLOZ | Panagram BBB-B CLO ETF

CLOZ ISSUER

Panagram Structured Asset Management, LLC manages an actively traded exchange-traded fund (ETF) known as the CLOZ issuer. This fund predominantly invests in collateralized loan obligations (CLOs) rated between BBB+ and B-, or equivalent, by nationally recognized statistical rating organizations (NRSROs), with a focus on BBB and BB rated tranches. With a target exposure of up to 70% in below investment grade CLO tranches, often referred to as high-yield or junk bonds, the fund emphasizes mezzanine or lower priority tranches, indicating subordinate payment status. Notably, CLOs feature a long-only investment strategy and are structured to prioritize senior secured loans, potentially lacking financial maintenance covenants, which could affect default management. The fund employs a non-diversified approach, yet restricts exposure to any single CLO manager to no more than 20% of total assets. Managed by Panagram, the fund utilizes both primary and secondary market opportunities, conducting thorough evaluations of CLO managers, documentation, cash flow, and collateral performance. While actively managed and not benchmarked against any specific index, the fund's investment decisions are grounded in a meticulous bottom-up analysis, aiming to balance returns and capital preservation amidst evolving market conditions.

CLOZ DIVIDEND

As an actively managed exchange-traded fund (ETF) specializing in collateralized loan obligations (CLOs), the CLOZ issuer, managed by Panagram Structured Asset Management, LLC, may distribute dividends to its investors. The dividend payments are typically derived from interest income earned on the underlying CLO investments within the fund's portfolio. Since CLOs are structured to generate cash flows from the underlying loan payments, the fund may receive periodic interest payments, a portion of which may be distributed to shareholders as dividends. However, it's important to note that dividend payments can vary based on factors such as the performance of the CLOs, prevailing interest rates, and the fund's expenses. Investors should consult the fund's prospectus and financial statements for specific details regarding dividend distributions and their frequency.

CLOZ TRACKING

The CLOZ issuer, managed by Panagram Structured Asset Management, LLC, is an actively managed exchange-traded fund (ETF) that does not seek to track the performance of any particular index. Unlike passively managed ETFs, which aim to replicate the returns of a specific benchmark, the CLOZ issuer employs an active investment approach. Instead of adhering to a predetermined index, the fund's portfolio managers utilize a bottom-up approach to select investments, focusing on sourcing opportunities in both primary and secondary markets for collateralized loan obligations (CLOs). Through rigorous analysis of individual CLOs, including evaluations of manager expertise, documentation, cash flow, and collateral performance, the fund aims to optimize returns while managing risk. This active management strategy allows the fund to adapt to changing market conditions and capitalize on investment opportunities as they arise, rather than adhering to the performance of a static index. Therefore, investors in the CLOZ issuer should expect the fund's performance to reflect the efficacy of its active management strategy rather than tracking the movements of a specific index.

CLOZ CORRELATION

The correlation of the CLOZ issuer, managed by Panagram Structured Asset Management, LLC, refers to the degree to which its returns move in relation to other financial instruments or market indices. As an actively managed exchange-traded fund (ETF) specializing in collateralized loan obligations (CLOs), the correlation of CLOZ can be influenced by various factors. While the fund does not seek to track the performance of a specific index, its correlation with broader market indices or asset classes may fluctuate over time. Factors such as interest rates, credit market conditions, and economic trends can impact the correlation of CLOZ with other assets. Additionally, the fund's active management strategy, which involves selecting CLO investments based on bottom-up analysis and market opportunities, can contribute to variations in correlation compared to passively managed funds. Investors should consider the correlation of CLOZ with their overall investment portfolio and risk tolerance when making investment decisions, as it can affect portfolio diversification and risk management strategies. Consulting with a financial advisor or reviewing the fund's prospectus for detailed information on historical correlation patterns is advisable for investors seeking to understand the relationship between CLOZ and other assets.

CLOZ SECTOR

The sector focus of the CLOZ issuer, managed by Panagram Structured Asset Management, LLC, revolves around collateralized loan obligations (CLOs). CLOs are structured financial products that primarily invest in corporate loans. These loans can encompass various sectors, including but not limited to telecommunications, healthcare, energy, consumer goods, and technology. Therefore, the sector exposure of the CLOZ issuer is inherently diversified, reflecting the underlying industries represented within the corporate loan portfolios of the CLO investments held by the fund. As the fund targets CLO tranches rated between BBB+ and B-, or equivalent, by nationally recognized statistical rating organizations (NRSROs), its sector exposure may be influenced by the credit quality and risk characteristics of the underlying loans within these CLOs. While the fund's primary focus is on CLO investments, its sector exposure indirectly encompasses a broad spectrum of industries represented in the corporate loan market. Investors should review the fund's prospectus for detailed information on sector allocations and risk considerations associated with the CLOZ issuer.

CLOZ EXPOSURE

The exposure of the CLOZ issuer, managed by Panagram Structured Asset Management, LLC, primarily revolves around collateralized loan obligations (CLOs). Specifically, the fund aims to invest at least 80% of its net assets in CLOs rated between BBB+ and B-, or equivalent, by nationally recognized statistical rating organizations (NRSROs). These CLOs are structured products that issue multiple tranches of asset-backed securities, collateralized by pools of loans which can include senior secured loans, senior unsecured loans, and subordinate corporate loans across various industries. The fund primarily targets mezzanine or lower priority CLO tranches, indicating a subordinated position within the CLO's capital structure. Additionally, the CLOZ issuer may have significant exposure, up to 70% of its total assets, in CLO tranches rated below investment grade (BB+ or lower), commonly referred to as high-yield or junk bonds. This exposure is managed with a focus on balancing total returns and capital protection, considering factors such as structural leverage, portfolio composition, and market conditions. While the fund may also invest up to 10% of its total assets in CLOs rated above BBB+ by NRSROs, the bulk of its exposure remains concentrated in CLOs rated below investment grade, reflecting its investment strategy and risk profile. Investors should carefully consider the fund's exposure to CLOs and its associated risk factors before investing, as outlined in the fund's prospectus and disclosure documents.