Janus Henderson launches AAA CLO ETF in Europe
Janus Henderson Investors has launched its first active fixed income exchange traded fund (ETF) in Europe.
Following the success of its US-based suite of collateralised loan obligation (CLO) ETFs, the firm has launched the Janus Henderson Tabula EUR AAA CLO UCITS ETF.
The fund will invest primarily in European AAA-rated CLOs. However, it has the flexibility to invest up to 30 per cent of its funds in non-European AAA CLOs which are compliant with European securitised regulations.
The fund will be managed by Colin Fleury, the company’s head of secured credit, alongside Denis Struc and Ian Bettney, portfolio managers on the secured credit team.
“AAA CLOs are a compelling alternative to investment-grade corporates, typically offering higher yields and more credit spread for a better-quality asset with lower sensitivity to interest rate volatility,” said Fleury.
Read more: CLO ETF market grows to $19bn
“They can significantly enhance clients’ potential to achieve higher levels of income in their fixed income or cash allocations.
“As a global leader in CLOs, we believe our rigorous due diligence and portfolio construction process can provide competitive risk-adjusted returns relative to traditional fixed income asset classes.”
The European ETF will be managed by a specialised team of six portfolio managers who have 27 years industry experience between them, supported by nine securitised analysts.
The portfolio management team aims to identify relative value opportunities, and will draw upon the expertise of the securitised and loans specialists at the firm.
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In the US, Janus Henderson is the fourth largest provider of actively managed fixed income ETFs, and the largest securitised ETF manager. Its US AAA CLO ETF is the largest CLO ETF globally.
“Building on our strong track record and success in the US, I’m delighted that we are now extending our expertise in securitised investing to our clients in Europe,” said Ignacio De La Maza, head of EMEA and LatAm client group at Janus Henderson.
“The Janus Henderson Tabula EUR AAA CLO UCITS ETF will provide investors access to the high-quality, floating rate European AAA CLO market, historically only made available to institutional investors, in a liquid and transparent manner.”
The fund will initially list on Xetra with ticker JCL0 followed by listings on the London Stock Exchange and Borsa Italiana, and will be available in all major European markets.
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