JAAA Profile
The Janus Henderson AAA CLO ETF is designed to provide investors with exposure to Collateralized Loan Obligations (CLOs) that are rated AAA, reflecting the highest level of creditworthiness. The fund aims to achieve its investment objective by allocating at least 90% of its net assets to CLOs that carry a AAA rating at the time of purchase. If a CLO is unrated, the fund manager assesses its credit quality to ensure it is comparable to AAA-rated CLOs.
CLOs are structured financial products that pool together various loans, primarily corporate loans, and distribute the cash flows to different tranches of securities. These securities are rated based on the credit quality of the underlying loans and the tranche's position in the CLO structure. AAA-rated CLOs are considered to have the lowest risk of default, as they receive payments before lower-rated tranches and typically have robust credit enhancement features.
In addition to its primary focus on AAA-rated CLOs, the fund may invest up to 10% of its assets in CLOs rated lower than AAA, with a minimum rating of A- at the time of purchase. The fund manager will also consider unrated CLOs, provided they are deemed to have comparable credit quality to the rated securities. This flexibility allows the fund to diversify its holdings while maintaining a focus on high-quality, low-risk investments.
Managed by Janus Henderson, a well-regarded asset management firm, the fund leverages the firm’s expertise in credit analysis and structured finance to carefully select CLOs that align with its investment strategy. Investors in the Janus Henderson AAA CLO ETF benefit from exposure to a high-quality segment of the CLO market, with a focus on minimizing credit risk while aiming for attractive returns.
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