Janus Henderson Investors launched the Janus Henderson AA-A CLO ETF (JA) as the firm continues to expand its lineup of active fixed income ETFs in the securitized space. The fund has secured $100 million in seed capital from The Guardian Life Insurance Company of America as part of Guardian and Janus Henderson’s previously announced multifaceted, strategic partnership.
JA is intended to provide access to high-quality AA to A rated CLOs, with broad diversification benefits based on historically low daily volatility and low correlation to traditional fixed income markets. The fund is an expansion of the firm’s successful CLO ETF franchise and leadership in the space globally.
The fund will be managed by long-tenured portfolio managers John Kerschner, CFA and Nick Childs, CFA, who bring decades of expertise within securitized markets and track records managing securitized ETFs together, including the JAAA, JBBB, JMBS, JABS and JSI ETFs. Jessica Shill, who is also a portfolio manager on JAAA and JBBB, will also join the portfolio management team on JA.
The launch of JA enhances Janus Henderson’s suite of CLO products by offering a fund aiming to invest in products with a credit rating between the firm’s JAAA and JBBB ETFs. The profile of A-rated CLOs fits in between that of AAA and BBB, both from a potential return perspective and a risk perspective.
“Securitized markets are proving to be a bright spot for investors right now — offering competitive yields and diversification,” John Kerschner, global head of securitized products and portfolio manager at Janus Henderson, said. “JA seeks to allow investors to position portfolios for resilience and growth in an evolving economic landscape. Given the strong demand for Janus Henderson’s leading CLO ETFs, we’re excited to offer clients access to another segment of the CLO market.”
