Janus Henderson’s pioneering AAA CLO ETF (JAAA) surpasses $20 billion in AUM

Rhea-AI Summary

Janus Henderson's AAA CLO ETF (JAAA) has surpassed $20 billion in assets under management, marking significant growth in the CLO ETF space. The fund experienced over 200% growth in 2024, starting at $5.3 billion and reaching $16.6 billion by year-end. JAAA is currently the largest CLO ETF and ranks first in year-to-date net flows among all active ETFs.

Launched in October 2020, JAAA provides investors access to high-quality floating rate AAA-rated CLO market through a liquid, transparent, and tax-efficient ETF structure. The fund is actively managed by Portfolio Managers John Kerschner, Nick Childs, and Jessica Shill, focusing on high-quality CLOs while seeking high yield without compromising quality or extending duration.

This milestone has positioned Janus Henderson as the third largest active fixed income ETF provider and eighth largest active ETF provider overall.

Positive

• JAAA ETF surpassed $20 billion in AUM
• Fund grew by over 200% in 2024 (from $5.3B to $16.6B)
• Ranked #1 in YTD net flows for all active ETFs
• Janus Henderson became 3rd largest active fixed income ETF provider

Negative

• None.

Insights

Fixed Income ETF Specialist

The remarkable growth of JAAA to $20 billion AUM marks a transformative achievement for Janus Henderson, with profound implications for both the company's market position and revenue potential. The 200%+ growth in 2024 is particularly noteworthy as it demonstrates exceptional product-market fit in the current high-yield environment.

This success has three key implications:

• Revenue Impact: With typical ETF management fees, this AUM growth should significantly boost JHG's fee-based revenue stream. CLO ETFs generally command higher fees than traditional fixed income ETFs due to their complexity and active management requirements.
• Market Leadership: Becoming the third-largest active fixed income ETF provider strengthens JHG's competitive moat in the rapidly growing ETF space. This positioning is particularly valuable as institutional investors increasingly adopt ETFs for fixed income exposure.
• Product Innovation: JAAA's success validates JHG's product development strategy, especially in democratizing institutional-quality investments for retail investors. This could accelerate the firm's innovation pipeline and attract more institutional capital.

The timing of this growth aligns perfectly with market conditions, as investors seek floating-rate exposure and high-quality yield in an uncertain rate environment. This suggests sustainable growth potential even as rates eventually normalize, given the structural advantages of the ETF format for accessing the CLO market.

Investment Product Strategist

JAAA's breakthrough success represents a masterclass in product development and market timing, creating substantial competitive advantages for Janus Henderson. The key strategic implications are multifaceted:

• First-Mover Advantage: As one of the first CLO ETFs, JAAA has established brand dominance in this niche, creating high barriers to entry for competitors through scale benefits and trading efficiency.
• Distribution Excellence: The rapid AUM growth reflects exceptional distribution capabilities across retail, intermediary and institutional channels - a valuable competitive advantage that can be leveraged for future product launches.
• Industry Evolution: This success accelerates the trend of democratizing institutional-quality investments, potentially catalyzing similar innovations across other alternative asset classes.

The achievement positions JHG at the forefront of the industry's evolution toward more sophisticated retail products, potentially creating opportunities for premium pricing and sustained competitive advantages in product development and distribution.

• JAAA is the largest CLO ETF and is ranked first in YTD net flows for all active ETFs
• Fund assets grew by over 200% in 2024, making Janus Henderson the third largest active fixed income ETF provider

DENVER--(BUSINESS WIRE)-- Janus Henderson Investors (NYSE: JHG) today announced that its pioneering AAA Collateralized Loan Obligation ETF, Janus Henderson AAA CLO ETF (JAAA), has surpassed $20 billion in assets under management (AUM). JAAA is the largest CLO ETF, as measured by AUM¹ and ranked first in year-to-date net flows for all active ETFs.² Janus Henderson’s suite of CLO products also includes JBBB, and a European CLO ETF.

In 2024, JAAA attracted the most inflows among all actively managed fixed income ETFs, highlighting its appeal and the growing investor appetite for innovative fixed-income solutions. The Fund's AUM experienced significant growth, starting 2024 at $5.3 billion and soaring to $16.6 billion by year end, representing a growth rate of over 200%. Janus Henderson is now the third largest active fixed income ETF provider and the eighth largest active ETF provider.³

JAAA was launched in October 2020 as one of the first CLO ETFs in the market. Since then, the Fund has continued to significantly expand U.S. investor access to the high-quality floating rate AAA-rated CLO market, an asset class that historically was largely only available to institutional investors, and is now available in a liquid, transparent, tax-efficient ETF structure.

Managed by Portfolio Managers John Kerschner, CFA, Nick Childs, CFA, and Jessica Shill, JAAA is an actively managed ETF that invests in high-quality CLOs and seeks high yield without sacrificing quality or extending duration.

John Kerschner, Head of U.S. Securitized Products and Portfolio Manager at Janus Henderson, said, “We are pleased to reach this $20 billion milestone in less than five years and are encouraged by the continued interest in our CLO ETFs across retail, intermediary, and institutional clients. JAAA has demonstrated its benefits including diversification, attractive floating-rate yield, high credit quality, and liquidity through various market events, which have helped contribute to the growth of the asset class.”

Nick Cherney, Head of Innovation at Janus Henderson, commented, “The continued growth of JAAA demonstrates clearly that innovative solutions that address client needs will always be the core of any successful product offering. JAAA has enabled the addition of this important asset class to a whole range of portfolios which historically were unable to benefit from the compelling attributes of CLO allocations in a robust fixed income portfolio.”

Michael Schweitzer, Head of North America Client Group, added, “We are grateful to our clients and their clients who have placed their confidence and trust in us to manage their capital. We believe investors should maintain diversification within their fixed income portfolios throughout the interest rate cycle. Therefore, in our view, an allocation to short duration fixed income remains highly relevant in the current environment, particularly considering how attractive short-term yields are.”

Janus Henderson has been at the forefront of active ETF innovation and offers a number of pioneering ETFs. In Fixed Income, 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, an actively managed mortgage-backed securities ETF, VNLA, an active global short duration income ETF, JLQD, a corporate bond ETF, and JEMB, an emerging markets debt hard currency ETF. The firm won Global Capital’s inaugural CLO ETF Provider of the Year award in 2024.⁴ In Equities, Janus Henderson’s active ETFs include the recently launched JXX, the first fundamental active equity ETF from the firm’s Denver-based Equities team, JMID a Mid Cap Growth Alpha ETF, and JRE, a U.S. real estate ETF, among others.

Notes to editors

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 December 31, 2024, Janus Henderson had approximately US$379 billion in assets under management, more than 2,000 employees, and offices in 25 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.

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.

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.

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

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.

This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers, or institutional investors. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes. All opinions and estimates in this information are subject to change without notice.

¹ Source: Bloomberg Professional Service and Janus Henderson, as of February 3, 2025.
² Source: Bloomberg Professional Service, as of January 31, 2025.
³ Source: Morningstar, as of December 31, 2024.
⁴ The CLO ETF Provider of the Year is chosen at Global Capital’s discretion and is based on a process that includes both self-submitted applications, independent research conducted by the awarding body, and market poll. Global Capital evaluates organizations based on their involvement in innovative or complex transactions, execution quality and structuring, business growth and advancement, and the extent of their securitization capabilities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206364853/en/

Press Inquiries



Janus Henderson Investors



Media Contact:



Candice Sun

Global Head of Media Relations

+1 303-336-5452

candice.sun@janushenderson.com



Investor Relations Contact:



Jim Kurtz

Head of Investor Relations

+1 303-336-4529

jim.kurtz@janushenderson.com

Source: Janus Henderson Investors

FAQ

How much did Janus Henderson's JAAA ETF grow in 2024?

JAAA ETF grew by over 200% in 2024, increasing from $5.3 billion to $16.6 billion in AUM.

What is the current AUM of Janus Henderson's JAAA CLO ETF?

JAAA CLO ETF has surpassed $20 billion in assets under management.

When was JHG's JAAA ETF launched?

JAAA ETF was launched in October 2020 as one of the first CLO ETFs in the market.

What is JAAA ETF's market position in the CLO ETF space?

JAAA is the largest CLO ETF by AUM and ranks first in year-to-date net flows for all active ETFs.

Who manages Janus Henderson's JAAA ETF?

JAAA is managed by Portfolio Managers John Kerschner, Nick Childs, and Jessica Shill.