Janus Henderson Investors Launches Pioneering Floating Rate AAA CLO ETF

Rhea-AI Summary

Janus Henderson Investors (NYSE/ASX: JHG) has launched the Janus Henderson AAA CLO ETF (NYSE: JAAA), an actively managed ETF designed to provide access to the $700B+ collateralized loan obligation (CLO) market. This fund aims to offer investors floating rate exposure, focusing on AAA-rated CLOs to enhance income while managing credit risk. The ETF will invest at least 90% of its net assets in AAA-rated CLOs, with a competitive expense ratio of 0.25%. It is managed by experienced portfolio managers and aims to support capital preservation and current income.

Positive

• Launch of Janus Henderson AAA CLO ETF (JAAA) broadens access to a previously institutional-only market.
• Targets a $700B+ asset class, increasing potential investment opportunities.
• Offers competitive expense ratio of 0.25%, making it attractive to investors.
• Managed by experienced portfolio managers ensuring rigorous due diligence.

Negative

• None.

DENVER--(BUSINESS WIRE)--Janus Henderson Investors (NYSE/ASX: JHG) today announced the launch of the Janus Henderson AAA CLO ETF (NYSE: JAAA), an actively managed exchange-traded fund designed to enhance access to a segment of the fixed income market that has historically only been available to institutional investors.

“Providing high-quality floating rate exposure, JAAA is designed to provide investors with access to an asset class that has the potential to address today’s low interest rate environment while mitigating unwanted credit risk,” said Nick Cherney, Head of Exchange-Traded Products at Janus Henderson. “CLOs are a $700B+ asset class and yet most investors have little to no exposure to this segment of the fixed income market. With the launch of JAAA, investors can gain access to the high-quality, floating rate CLO market, including Janus Henderson’s rigorous CLO manager due diligence and portfolio construction process.”

The Janus Henderson AAA CLO ETF seeks to provide capital preservation and current income by investing at least 90% of its net assets in CLOs of any maturity that are rated AAA or equivalent. The fund, which features an expense ratio of 0.25%, is managed by Portfolio Managers John P. Kerschner, CFA, and Nick Childs, CFA. Jessica Shill will serve as Assistant Portfolio Manager.

“In the current rate environment, AAA-rated CLOs are an attractive asset class for investors seeking income while managing risk in their fixed income portfolios,” said John Kerschner, Head of U.S. Securitized Products at Janus Henderson Investors and a Portfolio Manager of the Janus Henderson AAA CLO ETF. “From the global financial crisis that started in 2007 to the economic disruptions created by COVID-19 this year, markets have endured a seemingly endless series of extraordinary events, and notably, not a single AAA-rated CLO has defaulted.¹”

Notes to editors

About Janus Henderson

Janus Henderson Group (JHG) is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, fixed income, quantitative equities, multi-asset and alternative asset class strategies.

As of June 30, 2020, Janus Henderson had approximately US$337 billion in assets under management, more than 2,000 employees, and offices in 27 cities worldwide. Headquartered in London, the company is listed on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).

Investing involves risk, including the possible loss of principal and fluctuation of value. Past performance is no guarantee of future results. There is no assurance the stated objective(s) will be met.

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money.

OBJECTIVE: Janus Henderson AAA CLO ETF (JAAA) seeks capital preservation and current income by seeking to deliver floating-rate exposure to high quality AAA-rated collateralized loan obligations (“CLOs”).

Collateralized Loan Obligations (CLOs) are debt securities issued in different tranches, with varying degrees of risk, and backed by an underlying portfolio consisting primarily of below investment grade corporate loans. The return of principal is not guaranteed, and prices may decline if payments are not made timely or credit strength weakens. CLOs are subject to liquidity risk, interest rate risk, credit risk, call risk and the risk of default of the underlying assets.

Concentrated investments in a single sector, industry or region will be more susceptible to factors affecting that group and may be more volatile than less concentrated investments or the market as a whole.

Derivatives can be highly volatile and more sensitive to changes in economic or market conditions than other investments. This could result in losses that exceed the original investment and may be magnified by leverage.

Actively managed portfolios may fail to produce the intended results. No investment strategy can ensure a profit or eliminate the risk of loss.

Credit quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Ratings may differ by rating agency.

Janus Capital Management LLC is the investment adviser and ALPS Distributors, Inc. is the distributor. ALPS is not affiliated with Janus Henderson or any of its subsidiaries.

Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.

¹ Source: S&P Global and Janus Henderson