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Janus Henderson has filed to launch its first collateralised mortgage obligation alternate traded fund in Europe amid surging curiosity within the asset class.
The US asset supervisor has utilized to register an AAA CLO Ucits ETF as a authorized entity in Luxembourg, in line with a public register.
The fund has the identical title as an ETF that Janus Henderson manages within the US, which had $12.6bn in belongings underneath administration on the finish of September, Morningstar knowledge exhibits.
The US-domiciled fund invests no less than 90 per cent of its belongings in CLOs with an AAA credit standing, in line with the fund’s brochure. A collateralised mortgage obligation, or CLO, is a single safety backed by a pool of debt.
Janus Henderson declined to touch upon its plans.
This text was beforehand revealed by Ignites Europe, a title owned by the FT Group.
BlackRock and VanEck are amongst a number of different asset managers which have launched US-domiciled CLO ETFs, however the merchandise are new to the European market.
Bryan Armour, director of passive methods at Morningstar, stated Janus Henderson’s US-domiciled CLO ETF had led an “[explosion] in reputation” of such merchandise within the US, attracting $11.5bn of web inflows this yr.
“This nook of the ETF market held underneath $500mn in web belongings simply three years in the past, rising to $18bn immediately and curiosity has accelerated,” he stated.
Specialist company credit score supervisor Honest Oaks Capital launched Europe’s first CLO ETF in September, after securing authorisation from the Luxembourg monetary regulator to launch it as an ETF share class of an current mutual fund.
Neuberger Berman is among the many small variety of corporations which have launched European mutual funds or different funding funds that put money into CLOs.
Janus Henderson’s CLO plans come because the asset supervisor seems to determine itself within the European ETF market, following its takeover of London-based Tabula Funding Administration earlier this yr.
The US group launched its first European ETF final month with an actively managed Japan excessive conviction fairness technique.
Roger Thompson, Janus Henderson’s chief monetary officer, stated the corporate was planning to launch extra European ETFs within the coming months.
“We really feel like now we have the appropriate to win in [active ETFs]”, he advised analysts on an earnings name final week.
The group manages $21bn of ETF belongings within the US, the place it additionally has an ETF that invests in CLOs rated B to BBB.
Further reporting by Vibeka Mair
*Ignites Europe is a information service revealed by FT Specialist for professionals working within the asset administration business. Trials and subscriptions can be found at igniteseurope.com.
