DENVER--(BUSINESS WIRE)--Janus Henderson Investors (NYSE/AX: JHG) today announced that its pioneering AAA Collateralized Loan Obligation ETF, Janus Henderson AAA CLO ETF (JAAA), has surpassed $4 billion in AUM before its third anniversary, making it the largest fixed income ETF launch as measured by AUM, active or passive, of the last three years, according to Bloomberg data.* Janus Henderson is now the fifth largest provider of active fixed income ETFs in the U.S by AUM as of October 16, 2023.**
JAAA has continued to expand U.S. investor access to the high-quality floating rate market, as an increasingly broad array of investors have sought the potential benefit of adding the asset class to their portfolios. CLOs are a more than $1 trillion asset class; however, before the launch of JAAA, this segment of the fixed income market had largely only been available to institutional investors.
JAAA invests in high-quality CLOs and seeks high yield without sacrificing quality or extending duration. The Fund is managed by Portfolio Managers John P. Kerschner, CFA, Nick Childs, CFA, and Jessica Shill.
“We have had an overwhelming response to JAAA from clients given the benefits of investing in CLOs including attractive yield and income, diversification and exposure to high-quality floating rate credit. This combined with the market environment of high and rising rates, increasing economic uncertainty, and the transparency, liquidity, and low fees that the ETF structure provides has further propelled investor interest,” said John Kerschner, JAAA Portfolio Manager and Head of U.S. Securitized Products at Janus Henderson.
“We believe the success of JAAA, and our rise to the fifth largest provider of active fixed income ETFs in the U.S. is representative of how powerful and innovative Janus Henderson’s suite of highly differentiated active ETFs truly is. These products provide solutions to clients in areas of the market overlooked or underrepresented by market indices and allow us to express our high-conviction ideas in segments that generally only offered passive investments. Together, they are part of our mission to help clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service,” said Nick Cherney, Head of Innovation at Janus Henderson.
Janus Henderson has been at the forefront of active fixed income ETF innovation, offering a number of fixed income ETFs. These include a BBB CLO ETF (JBBB) which offers floating rate exposure to CLOs primarily rated BBB, an active mortgage-backed securities ETF (JMBS), which has outperformed the largest passive MBS ETFs net of fees every year since its launch and has attracted more than $1.2 billion in net inflows this year, and an active global short duration income ETF (VNLA), which has delivered consistent positive returns above cash across rate environments with an average volatility below 1.5%.
*As of October 16, 2023. Includes only new fund launches, not conversions of existing funds. (JAAA inception date: Oct 16, 2020)
**Source: Bloomberg data
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 June 30, 2023, Janus Henderson had approximately US$322 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. Headquartered in London, the company is listed on the NYSE and the ASX.
Source: Janus Henderson Group plc
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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.
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