Reckoner Launches Tax-Efficient CLO ETFs RAAR and RCLR
Reckoner Capital Management has introduced two new collateralized loan obligation (CLO) exchange-traded funds, Reckoner Yield Enhanced AAA CLO Reinvestment ETF (RAAR) and Reckoner BBB-B CLO Reinvestment ETF (RCLR). These funds are designed to provide tax-efficient exposure by allowing investors to reinvest dividends rather than receiving monthly distributions. This approach aims to reduce current income tax liabilities while enabling long-term capital gains after a 365-day holding period. RAAR and RCLR function as feeder funds for Reckoner's flagship CLO ETFs, RAAA and RCLO. Unlike traditional fixed-income ETFs that distribute dividends monthly, these new offerings accumulate net asset value (NAV) over time by reinvesting income internally. This structure is intended to appeal to registered investment advisors seeking after-tax return optimization. The funds offer access to institutional-grade CLO strategies with RAAR focusing on senior AAA-rated notes and RCLR targeting mezzanine BB-BBB tranches for higher yield potential.