Janus Henderson Investors Announces Changes to ETF Line-Up
Janus Henderson Investors repositions the Janus Henderson Sustainable Corporate Bond ETF to the Janus Henderson Corporate Bond ETF, focusing on income and capital appreciation through investing in investment-grade corporate notes and bonds while integrating ESG factors. The repositioning will not affect fees or Morningstar category, with a target effective date in mid-May 2024.
From a financial perspective, the repositioning of Janus Henderson's ETF from a focus on sustainable corporate bonds to a broader corporate bond strategy could reflect a strategic shift to appeal to a wider investor base. The decision to maintain the same fee structure and Morningstar category suggests an effort to minimize disruption for current investors and maintain competitive positioning within the market.
Integrating ESG factors into the investment process, rather than giving them special consideration, may indicate a response to the evolving regulatory and market environment where ESG investing is becoming mainstream. The fund's AUM of over $12.9B signifies substantial market presence and the repositioning could affect its performance and risk profile, potentially impacting investor returns and the fund's attractiveness in comparison to its peers.
Examining the market trends, there's a growing demand for ESG-focused investment products, but the shift by Janus Henderson could be an attempt to balance between ESG commitment and broader market appeal. The change may also be in response to investor feedback or market research indicating a preference for more traditional investment-grade corporate debt offerings.
The continued role of Michael Keough and Brad Smith as portfolio managers provides continuity, which could reassure investors about the fund's management stability. However, the market's reception to the repositioned fund will depend on its subsequent performance, especially in the context of how well ESG-integrated funds perform against those with a primary ESG focus.
From an ESG investment standpoint, the repositioning of the fund suggests a nuanced approach to ESG integration. While the fund will no longer prioritize ESG factors in security selection, the commitment to ESG integration indicates that Janus Henderson is aligning with a growing industry norm where ESG considerations are part of holistic risk management.
It is essential to monitor how this integration affects the fund's ESG ratings and investor perception, as these factors can influence capital inflows from ESG-motivated investors. The impact on the firm's ESG-focused strategies, such as the Brighter Future Funds, will also be an area of interest, as it reflects on the firm's overall commitment to responsible investing.
03/12/2024 - 08:15 AM
DENVER --(BUSINESS WIRE)--
Janus Henderson Investors today announced plans to reposition the Janus Henderson Sustainable Corporate Bond ETF (currently SCRD) to the Janus Henderson Corporate Bond ETF (JLQD).
Current Name
Current Ticker
New Name
New Ticker
Janus Henderson Sustainable Corporate Bond ETF
SCRD
Janus Henderson Corporate Bond ETF
JLQD
Janus Henderson regularly reviews its range of products to ensure that the firm’s product offering continues to meet client expectations and needs. After careful consideration, it was decided to proceed with a repositioning of the Fund.
The new investment objective of the Fund will be to seek total return consisting of income and capital appreciation, by investing primarily in investment-grade corporate notes and bonds.
The Fund will shift its focus from giving special consideration to certain environmental, social, and governance (“ESG”) factors in its security selection process and, instead, integrate ESG factors as part of its investment process only. Janus Henderson has confidence the firm can deliver strong risk-adjusted returns with a commitment to ESG integration of financially material ESG issues.
Michael Keough and Brad Smith will continue as portfolio managers on the Fund, and there will be no changes to fees or Morningstar category as a result of the reposition.
This reposition aligns with the firm’s existing US Corporate Credit strategy, and the portfolio managers will continue to rely on a bottom-up, fundamental research process to seek the most compelling investment ideas for inclusion in the portfolio, within a rigorous risk management framework.
Subject to approvals, the Fund’s repositioning will be effective in mid-May of 2024.
Janus Henderson remains committed to responsible investing. ESG integration and JHI’s Brighter Future Funds—our ESG-focused strategies—continue to be a priority for the firm.
Janus Henderson is a pioneer in providing innovative fixed income solutions designed to meet clients’ long-term objectives. As of January 31, 2024, Janus Henderson’s US ETF suite has over $12.9B
About Janus Henderson
Janus Henderson Group is a leading global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service.
As of December 31, 2023, Janus Henderson had approximately US$335 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. The firm helps millions of people globally invest in a brighter future together. Headquartered in London , Janus Henderson is listed on the NYSE.
Please consider the charges, risks, expenses, and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info . Read it carefully before you invest or send money.
Investing involves risk, including the possible loss of principal and fluctuation of value. Past performance is no guarantee of future results. There is no assurance the stated objective(s) will be met.
ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights in a non-binding manner alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Following the repositioning, this product will no longer pursue a sustainable investment strategy or have a sustainable investment objective or otherwise take ESG factors into account in a binding manner. ESG related research is one of many factors considered within the investment process.
Source: Janus Henderson Group plc
This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers, or institutional investors. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes. All opinions and estimates in this information are subject to change without notice.
Janus Henderson Investors US LLC is the investment adviser and ALPS Distributors, Inc. is the distributor. ALPS is not affiliated with Janus Henderson or any of its subsidiaries.
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311033054/en/
Media Contact:
Candice Sun
Candice.Sun@janushenderson.com
Investor Relations Contact:
Jim Kurtz
Jim.Kurtz@janushenderson.com
Source: Janus Henderson Group plc
What is the new name and ticker symbol for Janus Henderson Sustainable Corporate Bond ETF?
The new name is Janus Henderson Corporate Bond ETF, and the new ticker symbol is JLQD.
What is the new investment objective of the Fund after the repositioning?
The new investment objective is to seek total return consisting of income and capital appreciation by primarily investing in investment-grade corporate notes and bonds.
Will there be any changes to fees or Morningstar category as a result of the repositioning?
No, there will be no changes to fees or Morningstar category as a result of the repositioning.
Who are the portfolio managers on the Fund after the repositioning?
Michael Keough and Brad Smith will continue as portfolio managers on the Fund.
When is the target effective date for the Fund's repositioning?
The target effective date for the Fund's repositioning is in mid-May 2024.
