Pacer ETFs, an issuer that offers investors rules-based and strategy-driven ETFs, has announced in a press release that it has passed $9 billion in assets under management and acquired an ETF from Pacific Global ETFs.
Pacer closed out last year with $5.79 billion in assets under management and has been trailblazing through this year with the introduction of 13 new funds since January. This has allowed Pacer ETFs to keep hitting AUM milestones; in July, it announced $8 billion in assets under management, and now it has grown to $9 billion in the space of a few months.
It ahs also acquired the Pacific Global ETF fund, the Pacific Global Senior Loan ETF (FLRT), which will be renamed the Pacer Pacific Asset Floating Rate High Income ETF; the ticker will not change, but the annual expense ratio will be reduced to 0.60%.
“Our rapid growth over this short period speaks to the unique investment opportunities we offer, as well as the efforts of our team,” says Pacer ETFs Distributors’ president Sean O’Hara in the press release. “Through the addition of FLRT, we hope to provide a unique fixed-income strategy to advisors who are seeking an attractive solution in a yield-starved environment, especially one designed for a rising-rate world.”
FLRT currently seeks to offer investors a steady stream of income through investment in senior secured floating rate loans as well as other adjustable-rate securities (including collateralized loan obligations, asset-backed securities, and commercial mortgage backed securities) that are all rated below investment-grade, also known as “junk bonds” or high-yield securities.
Pacific Asset Management will be the sub-advisor of the fund and will actively manage it. When it believes that conditions are unfavorable and would impair the investment objectives of FLRT, it can invest some or all of the assets into cash and cash equivalents in order to achieve a defensive position against the market.
“We are pleased to work with Pacific Asset Management to enhance the fund’s strategy and deliver a unique ETF to a wider audience of advisors and investors,” shares Joe Thomson, founder and president of Pacer Financial, in the press release. “I’d like to recognize and thank all of our advisors, investors and partners who have supported Pacer over time. We appreciate your support and look forward to creating even more relationships and offering more leading solutions that meet your needs.”
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