JBBB Profile
The Janus Henderson B-BBB CLO ETF is designed to provide investors with exposure to Collateralized Loan Obligations (CLOs) that are rated B-BBB. CLOs are structured financial products backed by a diversified pool of loans, typically leveraged loans made to businesses. This fund focuses on CLOs that are primarily U.S. dollar denominated, targeting those with credit ratings in the B-BBB range, which represent various levels of credit risk and return potential within the CLO market.
The fund is structured to limit its investments in lower-rated CLOs, specifically capping its exposure to CLOs rated below investment grade (BB+ or lower) to no more than 15% of its net assets at the time of purchase. If a CLO is unrated, the Adviser will assess its credit quality to ensure it is comparable to the specified rating thresholds. This approach helps manage risk by avoiding excessive exposure to lower-rated, higher-risk CLOs while focusing on investments that fit within the funds credit quality criteria.
The Janus Henderson B-BBB CLO ETF may utilize derivatives exclusively to hedge or mitigate risks associated with its portfolio of CLOs. These derivatives are used to manage interest rate risks, credit risks, and other market fluctuations that could impact the performance of the CLO holdings. By employing risk management strategies, the fund aims to protect against adverse movements and stabilize returns for investors.
Managed by Janus Henderson Investors, a prominent global investment management firm, the fund benefits from the company's expertise in structured finance and credit markets. Janus Hendersons investment professionals use their extensive knowledge and analytical capabilities to evaluate CLO opportunities and manage the funds portfolio. This expertise, combined with rigorous risk management practices, supports the funds objective of delivering targeted exposure to CLOs while maintaining a disciplined approach to credit quality and risk.
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