Janus Henderson Investors Launches Floating Rate CLO ETF, 'JAAA'

In an effort to expand U.S. investor access to a high quality floating rate market, Janus Henderson Investors (NYSE/ASX: JHG) has a new fund now available on the NYSE.

Janus announced the launch of the Janus Henderson AAA CLO ETF (NYSE: JAAA), an actively managed exchange-traded fund designed to enhance access to a segment of the fixed income market that has historically only been available to institutional investors.

“Providing high-quality floating rate exposure, JAAA is designed to provide investors with access to an asset class that has the potential to address today’s low interest rate environment while mitigating unwanted credit risk,” said Nick Cherney, Head of Exchange-Traded Products at Janus Henderson.

He continued, “CLOs are a $700B+ asset class and yet most investors have little to no exposure to this segment of the fixed income market. With the launch of JAAA, investors can gain access to the high-quality, floating rate CLO market, including Janus Henderson’s rigorous CLO manager due diligence and portfolio construction process.”

Preserve That Cap

The Janus Henderson AAA CLO ETF seeks to provide capital preservation and current income by investing at least 90% of its net assets in CLOs of any maturity that are rated AAA or equivalent. The fund, which features an expense ratio of 0.25%, is managed by Portfolio Managers John P. Kerschner, CFA, and Nick Childs, CFA. Jessica Shill will serve as Assistant Portfolio Manager.

“In the current rate environment, AAA-rated CLOs are an attractive asset class for investors seeking income while managing risk in their fixed income portfolios,” said John Kerschner, Head of U.S. Securitized Products at Janus Henderson Investors and a Portfolio Manager of the Janus Henderson AAA CLO ETF.  “From the global financial crisis that started in 2007 to the economic disruptions created by COVID-19 this year, markets have endured a seemingly endless series of extraordinary events, and notably, not a single AAA-rated CLO has defaulted.”

For more information, visit http://janushenderson.com/info.

For more market trends, visit ETF Trends.