iShares € AAA CLO Active ETF GBP H

Issuer: iShares

Asset Class: Fixed Income

TER: 25

Trading Currency: GBP

Pays Income: False

Listing Date: 31 Mar 2026

Ticker: CLGH

ISIN: IE000VHC9HY7

This actively managed fund offers targeted exposure to the highest-rated tranche of European Collateralised Loan Obligations (CLOs). The investment strategy focuses exclusively on AAA-rated securities, which represent the senior-most and theoretically lowest-risk portion of a CLO's capital structure. A key feature of these assets is their floating-rate nature; their coupon payments are typically tied to a benchmark rate like EURIBOR, which means they adjust upwards in a rising interest rate environment. This characteristic can provide a potential hedge against inflation and interest rate risk, which can erode the value of traditional fixed-rate bonds. The primary objective is to generate a steady stream of income while aiming to preserve capital through its high-quality holdings.

The fund's active management approach is crucial in navigating the complex and specialized CLO market. The portfolio managers conduct in-depth credit analysis and due diligence on the underlying loan pools and the structure of each CLO. This allows them to selectively choose securities they believe offer the best risk-adjusted returns, manage potential risks such as prepayment or defaults within the underlying loans, and dynamically position the portfolio to adapt to changing market conditions. The fund primarily holds Euro-denominated CLOs. This specific share class is hedged, which is a strategy designed to minimize the impact of currency fluctuations between the underlying investments and the investor's home currency.

For investors, this product can serve as a valuable diversifier within a broader fixed-income allocation. It provides access to a niche segment of the structured credit market that has historically offered a yield premium over similarly-rated corporate or government bonds. It is most suitable for those seeking to enhance their portfolio's income generation potential and who are looking for assets that may perform well when interest rates are rising. The strict focus on the AAA-rated tranche is intended to mitigate credit risk, making it an option for more conservative investors who are comfortable with the unique complexities of asset-backed securities.