Janus Henderson expands its range of CLO ETFs with a new fund that invests in AA- and A-rated securities. According to the firm, this new vehicle complements the flagship Janus Henderson ETFs JAAA and JBBB. The Janus Henderson AA-A CLO ETF (JA) has secured $100 million in seed capital from The Guardian Life Insurance Company of America (Guardian), as part of the previously announced multifaceted strategic partnership between Guardian and Janus Henderson.
The fund aims to provide access to high-quality AA- to A-rated CLOs, with broad diversification benefits based on historically low daily volatility and low correlation with traditional fixed income markets. In doing so, the asset manager expands the firm’s successful CLO ETF franchise and its global leadership in this segment.
According to the firm, the fund will be managed by long-tenured portfolio managers John Kerschner, CFA, and Nick Childs, CFA, who bring decades of experience in securitized markets and a combined track record managing securitized ETFs, including JAAA, JBBB, JMBS, JABS, and JSI. In addition, Jessica Shill, who also manages JAAA and JBBB, will join the management team for JA.
“Securitized markets are proving to be a strength for investors at this time, offering competitive returns and diversification. JA seeks to enable investors to position portfolios for resilience and growth in a changing economic environment. Given the strong demand for Janus Henderson’s flagship CLO ETFs, we are excited to provide clients with access to another segment of the CLO market,” said John Kerschner, Global Head of Securitized Products and Portfolio Manager at Janus Henderson.
The firm emphasizes that this launch strengthens its CLO product range by offering a fund that aims to invest in instruments with a credit rating positioned between those of the firm’s JAAA and JBBB ETFs.
