Janus to Offer Actively Managed Short Duration Bond ETF
|07/28/2016 | 10:37am|
Janus Capital Group, Inc. (NYSE:JNS) today announced it has filed a registration statement with the Securities and Exchange Commission for an actively managed fixed-income exchange traded fund (ETF) – the Janus Short Duration Income ETF (NYSE:VNLA).
The Short Duration Income ETF represents an expansion of Janus’ global macro fixed income lineup, continuing the firm’s strategy of intelligent diversification to offer best-in-class investment alternatives. This ETF will complement the Kapstream Absolute Return Income strategy.
Kumar Palghat and Nick Maroutsos will be co-lead portfolio managers of the Janus Short Duration Income ETF. The Global Macro Fixed Income Team will continue to provide support for all strategies and is structured to allow for continued expansion and collaboration as the product line evolves. As part of this expansion in Kumar’s responsibilities, he will discontinue his role as Portfolio Manager of the Janus Global Unconstrained Bond Fund.
The Janus Short Duration Income ETF will seek to provide a steady income stream with capital preservation across various market cycles, with the aim to deliver returns 2-3% above the 3-month LIBOR rate through various market cycles with low volatility.
"The key is to capitalize on structural inefficiencies in fixed-income markets," Palghat said. "By actively looking for value across sectors and geographies using a wide range of fixed-income instruments, we believe we will be better positioned to outperform through market cycles."
The Short Duration Income ETF represents Janus’ first step into the active ETF market since initially offering exchange traded products (ETPs) following the acquisition of VelocityShares in 2014. Janus’ ETP strategy is based on offering differentiated products in categories including tactical, enhanced beta and active ETFs. As of 6/30/2016, Janus’ total ETP assets were $3.8 billion.
"Advisors have embraced actively managed fixed-income ETFs as they look for expert management to navigate low cash returns and potentially rising rates, while still enjoying the structural benefits of ETFs," said Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group.
If all approvals are granted, the ETF is expected to launch on or around October 2016.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm dedicated to delivering better outcomes for clients through a broad range of actively managed and smart beta investment solutions, including fixed income, equity, alternative and multi-asset class strategies. It does so through a number of distinct asset management platforms, including investment teams within Janus Capital Management LLC (Janus), as well as INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins) and Kapstream Capital Pty Limited (Kapstream), in addition to a suite of exchange-traded products. Each team brings distinct asset class expertise, perspective, style-specific experience and a disciplined approach to risk. Investment strategies are offered through open-end funds domiciled in both the U.S. and offshore, as well as through separately managed accounts, collective investment trusts and exchange-traded products. Based in Denver, JCG has offices located in 12 countries throughout North America, Europe, Asia and Australia; the firm had complex-wide assets under management and ETP assets totaling $194.7 billion as of June 30, 2016.
Investing involves risk, including the possible loss of principal and fluctuation of value. Past performance is no guarantee of future results.
A registration statement relating to this ETF has been filed with the Securities and Exchange Commission but has not yet become effective. The information in the prospectus is not complete and may be changed. The securities may not be sold until the registration statement filed with the securities exchange commission is effective. The prospectus is not an offer to sell securities and is not soliciting an offer to buy securities in any state where the offer is not permitted.
Please consider the investment objectives, risks, and charges and expenses carefully before investing. A prospectus will contain this and other information. You can obtain a copy of the prospectus by calling 877.33.JANUS (52687). The final prospectus should be read carefully before investing.
Fixed income securities are subject to interest rate, inflation, credit and default risk. As interest rates rise, bond prices usually fall, and vice versa. High-yield bonds, or “junk” bonds, involve a greater risk of default and price volatility. Foreign securities, including sovereign debt, are subject to currency fluctuations, political and economic uncertainty, increased volatility and lower liquidity, all of which are magnified in emerging markets.
Derivatives involve risks in addition to the risks of the underlying securities, including gains or losses which, as a result of leverage, can be substantially greater than a derivative’s original cost. No investment strategy can ensure a profit or eliminate the risk of loss.
LIBOR (London Interbank Offered Rate) is a short-term interest rate that banks charge one another and that is generally representative of the most competitive and current cash rates available. An investment cannot be made directly in an index.
Enhanced Beta or Smart Beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices.
ALPS Distributors, Inc. is the distributor for Janus ETFs. Mutual funds distributed by Janus Distributors LLC. ALPS is not affiliated with Janus Capital Management LLC, INTECH Investment Management LLC, Kapstream Capital Pty Limited, Perkins Investment Management LLC and VelocityShares. Janus is a registered trademark of Janus International Holding LLC. © Janus International Holding LLC.
Erin Passan, 303?394?7681
John Groneman, 303?336?7466