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Janus Henderson has filed to launch its first collateralised loan obligation exchange traded fund in Europe amid surging interest in the asset class.
The US asset manager has applied to register an AAA CLO Ucits ETF as a legal entity in Luxembourg, according to a public register.
The fund has the same name as an ETF that Janus Henderson manages in the US, which had $12.6bn in assets under management at the end of September, Morningstar data shows.
The US-domiciled fund invests at least 90 per cent of its assets in CLOs with an AAA credit rating, according to the fund’s brochure. A collateralised loan obligation, or CLO, is a single security backed by a pool of debt.
Janus Henderson declined to comment on its plans.
This article was previously published by Ignites Europe, a title owned by the FT Group.
BlackRock and VanEck are among several other asset managers that have launched US-domiciled CLO ETFs, but the products are new to the European market.
Bryan Armour, director of passive strategies at Morningstar, said Janus Henderson’s US-domiciled CLO ETF had led an “[explosion] in popularity” of such products in the US, attracting $11.5bn of net inflows this year.
“This corner of the ETF market held under $500mn in net assets just three years ago, growing to $18bn today and interest has accelerated,” he said.
Specialist corporate credit manager Fair Oaks Capital launched Europe’s first CLO ETF in September, after securing authorisation from the Luxembourg financial regulator to launch it as an ETF share class of an existing mutual fund.
Neuberger Berman is among the small number of companies that have launched European mutual funds or alternative investment funds that invest in CLOs.
Janus Henderson’s CLO plans come as the asset manager looks to establish itself in the European ETF market, following its takeover of London-based Tabula Investment Management earlier this year.
The US group launched its first European ETF last month with an actively managed Japan high conviction equity strategy.
Roger Thompson, Janus Henderson’s chief financial officer, said the company was planning to launch more European ETFs in the coming months.
“We feel like we have the right to win in [active ETFs]”, he told analysts on an earnings call last week.
The group manages $21bn of ETF assets in the US, where it also has an ETF that invests in CLOs rated B to BBB.
Additional reporting by Vibeka Mair
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.
