Janus Henderson has launched an active fixed income exchange-traded fund (ETF) on the Chi-X exchange in response to a growing demand for defensive solutions.
The Janus Henderson Tactical income Active ETF (TACT), which offered access to a diversified fixed income solution in a single transaction, was launched to help Australians, who were traditionally underinvested in fixed income, invest in defensive solutions as investors triggered by the coronavirus pandemic were reshuffling their investment priorities.
The fund would employ active asset allocation to achieve its capital preservation focus, with the ability to invest in cash, fixed and floating interest rate securities including government and semi-government bonds, asset backed securities, corporate securities and hybrids, the firm said.
“Our clients are demanding more choice in how they access our world class investment options. We are naturally excited to complement our existing fund range with an active ETF for investors who seek to preserve capital, without sacrificing diversification, steady income and transparency,” Matt Gaden, head of Australia for Janus Henderson, said.
TACT was structured as an additional share class of the $3.4 billion Janus Henderson Tactical Income fund which had a proven track record and was established in the aftermath of the Global Financial Crisis (GFC).
Gaden stressed that the launch of the new active ETF also aimed to mitigate losses during tough times by investing in a diversified pool of truly defensive assets.
Since inception to 30 June 2020, the Janus Henderson Tactical Income Fund has delivered outsized returns of 5.50% per annum (gross) and 5.03% pa (net).
Chief Executive Officer of Chi-X Australia, Vic Jokovic, added up to 40% of trading and reporting volumes in Australian ETFs regularly takes place on Chi-X.
“The Janus Henderson Tactical Income Active ETF offers an important defensive option for Australian investors looking to diversify their exposure with the ease of investing in an ETF,” he added.