Janus Henderson Launches Emerging Markets Debt Hard Currency Exchange Traded Fund

Rhea-AI Summary

Janus Henderson Group (NYSE: JHG) has launched the Janus Henderson Emerging Markets Debt Hard Currency ETF (JEMB). The Fund aims to provide income and capital growth over the long term by investing in emerging markets debt denominated in hard currencies like USD or EUR. Key points:

- Managed by a team of four portfolio managers
- Focuses on country allocation and security selection
- Offers exposure to EM growth potential with high country diversification
- All holdings are fully hedged to USD
- Expands JHG's active fixed income ETF suite

This launch aligns with Janus Henderson's strategic initiative to lead in active fixed income ETFs. The firm is currently the fourth largest active fixed income ETF provider globally.

Positive

• Launch of new ETF (JEMB) expands JHG's product offerings in the emerging markets debt sector
• JEMB provides access to a diverse asset class with potential for attractive returns
• All holdings in the Fund are fully hedged to USD, reducing currency risk
• Janus Henderson is the fourth largest active fixed income ETF provider globally
• The firm won Global Capital's inaugural CLO ETF Provider of the Year award in 2024

Negative

• None.

Insights

Financial Analyst

The launch of Janus Henderson's Emerging Markets Debt Hard Currency ETF (JEMB) is a strategic move that could potentially benefit both the company and investors. Key points to consider:

• Expanding into the fast-growing active fixed income ETF market could boost Janus Henderson's market share and revenue streams.
• The fund offers exposure to emerging markets growth with reduced currency risk, potentially attracting risk-averse investors seeking diversification.
• With yields comparable to US high yield corporate debt, JEMB may offer attractive returns in the current high-yield environment.

However, investors should be aware that emerging market debt carries inherent risks, including political and economic instability. The success of JEMB will largely depend on the management team's ability to navigate these challenges and deliver consistent returns.

Market Research Analyst

The launch of JEMB reflects growing investor interest in emerging markets and the demand for diversified, actively managed fixed income products. Market implications:

• The expansion of the emerging markets debt universe, now covering 60% of global GDP, presents significant opportunities for investors.
• Janus Henderson's position as the fourth largest active fixed income ETF provider globally could be further solidified with this launch.
• The focus on hard currency debt may appeal to investors concerned about local currency volatility in emerging markets.

As the ETF market continues to evolve, we may see increased competition in the active fixed income space, potentially leading to innovation and lower fees for investors. The success of JEMB could encourage other asset managers to develop similar products, further expanding the emerging markets debt ETF landscape.

DENVER--(BUSINESS WIRE)-- Janus Henderson Group (NYSE: JHG) today announced it has launched the Janus Henderson Emerging Markets Debt Hard Currency ETF (Fund). The ticker for the Fund is JEMB.

The Fund will be managed by Portfolio Managers Bent Lystbaek, Jacob Ellinge Nielsen, Thomas Haugaard, and Sorin Pirau, CFA.

The investment objective of the Fund seeks to provide a return from a combination of income and capital growth over the long term.

Over the long-term, EMD hard currency has delivered attractive returns when adjusted for credit quality, with half of the universe now investment-grade. Today, the asset class is offering yields similar in magnitude to US high yield corporate debt.

Hard currency debt for the Fund is issued by an EM-domiciled entity but denominated in another base currency – most often in US dollars or Euros. This allows for access to the debt of EM issuers, but with a more certain legal framework and insulated from the volatility of local currencies. All holdings in the Fund are fully hedged to the US dollar.

JEMB will expand our existing Emerging Markets Debt (EMD) Hard Currency strategy into the US market and further expand the firm’s active fixed income ETF suite of products.

“The launch of the Janus Henderson EMD Hard Currency ETF is one more step in our strategic initiative to be a leader in active fixed income ETFs. JEMB will now be a part of one of the fastest growing and most successful active ETF platforms in the industry,” said Jim Cielinski, Global Head of Fixed Income at Janus Henderson.

An EMD Hard Currency strategy provides the ability for US investors to gain access to the full spectrum of the EMD universe, with the strategy offering exposure to emerging market growth potential with a high degree of country diversification. The number of countries in the hard currency sovereign universe has more than doubled in less than 20 years to reach 70 today, spanning the entire development spectrum, more than 60% of global GDP and 80% of the global population. This asset class provides a potentially differentiated return stream and could allow US investors to diversify credit exposure in their portfolios.

The EMD team has an active investment style, seeking investment opportunities both within and off the benchmark. The focus of the strategy is to generate performance via a combination of country allocation and security selection, rather than relying on large thematic or broader global market drivers.

“Emerging Markets Debt Hard Currency is an evolving and diverse asset class that potentially offers total return upside and portfolio diversification benefits,” said Lystbaek. “We are delighted to be able to offer our expertise to clients, and the launch of this product means that it is even more accessible to a broader range of investors.”

Janus Henderson has been at the forefront of active fixed income ETF innovation and offers a number of pioneering fixed income ETFs. These include JAAA, the largest CLO ETF¹, JBBB, which provides exposure to floating-rate CLOs generally rated BBB, JSI, which invests in opportunities across the U.S. securitized markets, JMBS, the largest actively managed mortgage-backed securities ETF², VNLA, an active global short duration income ETF, and JLQD, a corporate bond ETF. Janus Henderson is the fourth largest active fixed income ETF provider globally.³ The firm won Global Capital’s inaugural CLO ETF Provider of the Year award in 2024.⁴

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Notes to editors

About Janus Henderson

Janus Henderson Group is a leading global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service. As of June 30, 2024, Janus Henderson had approximately US$361 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. The firm helps millions of people globally invest in a brighter future together. Headquartered in London, Janus Henderson is listed on the New York Stock Exchange.

Source: Janus Henderson Group plc

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.

Past performance is no guarantee of future results. There is no assurance the stated objective(s) will be met.

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

Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.

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 more volatile and sensitive to economic or market changes than other investments, which could result in losses exceeding the original investment and 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.

Janus Henderson Investors US 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.

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1	Source: Morningstar as of July 31, 2024
2	Source: Morningstar as of July 31, 2024
3	Source: Morningstar as of July 31, 2024
4	For more about the awards, including selection criteria, please visit: https://www.globalcapital.com/us-securitization

 

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Press Inquiries

Sarah Johnson, +1 720-364-0708

sarah.johnson@janushenderson.com

Candice Sun, +1 303-336-5452

candice.sun@janushenderson.com

Investor Relations Inquiries

Jim Kurtz, +1 303-336-4529

jim.kurtz@janushenderson.com

Source: Janus Henderson Group plc

FAQ

What is the ticker symbol for Janus Henderson's new Emerging Markets Debt Hard Currency ETF?

The ticker symbol for Janus Henderson's new Emerging Markets Debt Hard Currency ETF is JEMB.

Who are the portfolio managers for Janus Henderson's JEMB ETF?

The JEMB ETF is managed by Portfolio Managers Bent Lystbaek, Jacob Ellinge Nielsen, Thomas Haugaard, and Sorin Pirau, CFA.

What is the investment objective of Janus Henderson's JEMB ETF?

The investment objective of JEMB is to provide a return from a combination of income and capital growth over the long term by investing in emerging markets debt denominated in hard currencies.

How does Janus Henderson's JEMB ETF manage currency risk?

All holdings in the JEMB ETF are fully hedged to the US dollar, which helps manage currency risk for investors.