Janus Henderson USD AAA CLO Active Core UCITS ETF GBP-Hedged Dist.

Issuer: Janus Henderson

Asset Class: Fixed Income

TER: 0.25%

Trading Currency: GBP

Pays Income: True

Listing Date: 30 May 2025

Ticker: JAAS_LN

ISIN: LU2994521669

The Janus Henderson USD AAA CLO Active Core UCITS ETF GBP-Hedged Dist. focuses on investing in a diversified portfolio of collateralized loan obligations (CLOs) that are rated AAA. CLOs are structured credit products backed by pooled corporate loans, allowing investors to gain exposure to the secured lending market. This particular ETF aims to provide a higher yield compared to traditional fixed-income investments while maintaining a strong credit quality, as it primarily invests in the highest-rated tranche (AAA) of CLOs. The choice to focus on AAA-rated assets helps mitigate default risk, making it an attractive option for investors seeking stable income through distributions. Additionally, the GBP-hedged feature of this ETF addresses currency risk for UK investors. Since the underlying assets are denominated in USD, fluctuations in exchange rates can significantly impact returns when converted back to GBP. By employing a hedging strategy, the ETF aims to minimize this currency-induced volatility, offering greater predictability in returns and making it easier for investors to align with their investment goals. This focus on currency management can enhance the overall investment appeal of the ETF, particularly in times of economic uncertainty where currency fluctuations can be pronounced. Moreover, the ETF's active management approach allows fund managers to dynamically adjust exposure based on market conditions, credit performance, and macroeconomic factors. This helps optimize yield while aiming to preserve capital in a potentially fluctuating interest rate environment. The combination of high credit quality, strategic currency hedging, and active management positions the Janus Henderson USD AAA CLO Active Core UCITS ETF GBP-Hedged Dist. as a compelling choice for investors looking to diversify their portfolios while seeking attractive risk-adjusted returns through a well-structured investment vehicle.