Janus Henderson secures US$400m deal for fixed income development
Janus Henderson has closed on its strategic partnership with life insurer Guardian which will see up to US$400 million committed to boost the fund manager’s fixed income range.
The deal was first announced in April and is a threefold deal, one of which focuses on Janus’ fixed income development.
Guardian, which has US$172 billion in assets under administration, will commit up to US$400 million of seed capital to help accelerate Janus Henderson’s continued innovation in securitised credit and high-quality active fixed income products, as well as other leading fixed income capabilities, such as active fixed income ETFs.
The deal will provide “seed capital to rapidly launch and scale new fixed income products with anchor capital and free up Janus Henderson seed for non-fixed income products”, a presentation described.
Janus currently has $143.6 billion in fixed income assets under management across strategies such as Australian fixed income, global high yield, multi-asset credit, and secured loans.
During the most recent quarter, flows into its fixed income products stood at US$5.6 billion, up from US$0.1 billion in the prior corresponding period. This compared to redemptions of US$4.2 billion from its equity range.
According to Betashares, flows into cash and fixed income ETFs were $1.3 billion during May, compared to just $366 million in the previous month.
Active fixed income ETFs have been an area flagged by ETF commentators as one expected to see strong growth in the coming years. Speaking to Money Management last month, JPMAM’s global head of ETFs, Travis Spence, said he could foresee a boom in fixed income ETFs, especially those in the active space.
“One of the areas we are seeing particular interest from institutional investors is in fixed income which is traditionally an active asset class that can be difficult to access. They don’t always trade on a daily basis, so ETFs offered via the secondary market offer an extra layer of liquidity and that’s an additional benefit. That will be an area of growth going forward.”
In February, Janus listed the Janus Henderson Australian Fixed Interest Active ETF (JFIX) on Cboe Global Markets that offers investors exposure to government and semi-government bonds alongside corporate and asset-backed securities. Its local product suite already includes two fixed interest active ETF funds – the Tactical Income Active ETF (TACT) and the Sustainable Credit Active ETF (GOOD).
Secondly, Guardian and Janus Henderson will co-develop proprietary, multi-asset solution model portfolios for Guardian’s dually registered broker-dealer and registered investment adviser, Park Avenue Securities (PAS), which has over 2,400 advisers covering approximately US$58.5 billion of client assets under management.
Finally, Janus will run the US$45 billion ($75.5 billion) portfolio for Guardian’s general account which includes investment grade corporates and securitised credit.
Ali Dibadj, Janus Henderson chief executive, said: “We are excited to reach this significant milestone in our multifaceted, strategic partnership with Guardian, which further expands our insurance presence and institutional reach.
“The foundation of our partnership is built on our shared exceptional client focus, and we are pleased to bring to bear our strengths in fixed income, multi-asset solutions and model portfolios to achieve mutually beneficial outcomes for clients and policyholders alike.”
Andrew McMahon, Guardian chairman and chief executive, said: “We are pleased to close this strategic transaction with Janus Henderson. This partnership leverages our complementary strengths, allowing us to accelerate our investment strategy and bolster our wealth management capabilities for the benefit of our customers and policyholders.”
AUTHOR
Laura Dew
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