Reinvest for Growth: Reckoner’s CLO ETFs Optimize Portfolio Yield Potential

In today’s fixed-income landscape, investors continue to seek resilient, tax-advantaged income options. That said, collateralized loan obligations (CLOs) have emerged as a highly compelling alternative to traditional offerings in the capital markets, such as corporate bonds. Reckoner Capital offers two distinct, actively managed strategies designed to capture this opportunity while maximizing compounding growth through unique reinvestment options that minimize distributions and associated tax implications.These funds are the Reckoner Yield Enhanced AAA CLO Reinvesting ETF (RAAR) and Reckoner BBB-B CLO Reinvesting ETF (RCLR).RAAR and RCLR: Two Distinct OpportunitiesRAAR targets what we believe to be the most secure corner of the CLO market by investing in senior, AAA-rated tranches. The fund enhances this ultra-high-quality profile by strategically employing a collateralized financing strategy to boost yield potential in today’s higher-for-longer interest rate regime. However, instead of focusing on immediate payouts, the fund emphasizes reinvesting the enhanced return potential back into the portfolio. In effect, this creates a powerful vehicle for long-term capital compounding without the tax implications of monthly payouts. See More: Why Active Management Is Non-Negotiable for CLOs For prospective investors willing to move down the credit spectrum for higher yield potential, RCLR steps into mezzanine debt. By actively selecting diversified BBB- and BB-rated tranches, RCLR seeks to capture a higher yield premium while maintaining rigorous risk management across multiple managers and loan pools. Like RAAR, RCLR prioritizes continuous reinvestment to maximize compounding, making it an efficient tool for building wealth without the drag of continuous distributions.Reckoner Capital’s Active AdvantageThe common denominator of both funds is the advantage Reckoner Capital brings compared to other CLO ETFs—active management. Because we believe this asset class isn’t reserved for surface-level understanding, it requires the expertise of portfolio managers who can navigate the intricacies of the CLO market. CLOs inherently carry structural complexities that go beyond the limitations of a passive index. As such, it requires an active strategy with managers who have the requisite knowledge and understanding of these structured products. RAAR and RCLR can fit seamlessly into a modern asset allocation strategy. RAAR serves as a robust, low-volatility anchor that enhances yield potential at the core of a fixed-income sleeve. Meanwhile, RCLR functions as an opportunistic satellite holding that provides a diversified, high-yielding potential alternative to traditional corporate high-yield bonds. Through active management, both funds can dynamically balance the structural seniority of CLOs with high-conviction growth. Click here to view Reckoner Capital’s entire ETF suite. For more news, information, and analysis, visit the Market Insights Content Hub. Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations (NRSROs) on a typical credit rating scale that ranges from AAA (highest rating) to D (lowest). “Triple B” (BBB) and “Double B” (BB) refer to investment-grade and below-investment-grade ratings, respectively, reflecting the relative creditworthiness or risk of a security or issuer. For more information on credit ratings, please click here.Important InformationInvestors should consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus and a summary prospectus which contains this and other information about the fund may be obtained by visiting https://funds.reckoner.com/assets/pdfs/ReinvestingETFs-Prospectus.pdf or call 212.597.2500. Please read each prospectus carefully before investing. While the adviser intends to manage the Fund in a tax-efficient manner, there can be no assurance that it will be able to do so. Nothing in this communication constitutes tax advice. Investors are urged and advised to consult their own tax adviser with respect to the tax consequences of an investment in any of the above ETFs. Investing involves risk. Loss of principal is possible. Each fund’s principal investment risks include all or some of the following risks: management risk, novel structure risk, affiliated fund risk, collateralized loan obligation risk, non-diversified fund risk, new fund risk, leverage risk, and liquidity risk. For additional information about these and other fund risks, please refer to the “Principal Investment Risks” section of each prospectus. ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Past performance is no guarantee of future results. Collateralized Loan Obligations (“CLOs”) are structured products that issue different tranches, with varying degrees of risk, which are backed by an underlying portfolio consisting primarily of below investment grade corporate loans. Investments in CLOs presents risks similar to those of other credit investments, including interest rate risk, credit risk, liquidity risk, prepayment risk, and the risk of defaults of the underlying assets. Distributor: Quasar Distributors, LLC.