JH EUR AAA CLO ACTIVE ETF USDHA
| Issuer: Janus Henderson |
| Asset Class: Fixed Income |
| TER: 38bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 06 Mar 2025 |
| Ticker: JCLU |
| ISIN: LU2941599248 |
This actively managed fund provides a unique opportunity to invest in the senior, AAA-rated tranches of European Collateralised Loan Obligations (CLOs). The primary objective is to generate income by tapping into a segment of the fixed-income market that offers potentially attractive yields and is typically dominated by institutional investors. By focusing exclusively on the highest-rated tranches, the strategy prioritises credit quality and aims to mitigate default risk. The portfolio is constructed through a rigorous security selection process, leveraging the manager's expertise in analysing CLO structures, underlying loan portfolios, and manager capabilities. This approach seeks to identify the most compelling risk-adjusted opportunities within the European CLO universe.
A key feature of this specific share class is its currency-hedging mechanism, which is designed to minimise the impact of exchange rate fluctuations between the fund's base currency and the share class currency. This makes it a suitable option for dollar-based investors seeking to diversify their fixed-income allocation into European assets without taking on direct currency risk. The floating-rate nature of CLOs also provides a natural hedge against rising interest rates, as the coupons on the underlying loans typically reset periodically. This characteristic can make the fund an appealing component in a diversified portfolio, especially in periods of shifting monetary policy.
The investment proposition centres on providing access, diversification, and potentially enhanced yield. CLOs can offer a yield premium over similarly rated corporate bonds and other securitised products. Furthermore, their performance has historically shown a low correlation to traditional fixed-income and equity markets, adding a valuable diversification element to a broader investment strategy. The active management allows for dynamic positioning to navigate changing market conditions, select what the managers believe to be the best-in-class CLOs, and manage risks inherent in this specialised asset class, ultimately aiming to deliver consistent income.
