Janus Henderson Investors has added to its active fixed income strategy in Europe with the launch of a new mortgage-backed securities (MBS) ETF.
The Janus Henderson Tabula Mortgage-Backed Securities (JMBS) UCITS ETF will invest at least 90 per cent of its assets in agency mortgage-backed securities (MBS), which are issued or guaranteed by government-sponsored enterprises such as Fannie Mae or Freddie Mac.
Read more: Australian RE investment manager launches private credit fund
However, the fund may include up to 10 per cent exposure to non-agency MBS to improve its diversification.
It will be managed by John Kerschner, Nick Childs and Thomas Polus, who will be supported by a team of investors responsible for over $15bn (approximately £11.4bn) in MBS.
Janus Henderson Investors’ agency mortgage-backed strategy has seen strong uptake in the US, so the new fund will now make the strategy available to non-US investors.
Read more: Granite Asia’s private credit fund secures £250m ahead of launch
“JMBS is well-suited to investors looking to generate income while also seeking to insulate their portfolio during risk-off environments,” said Kerschner, who is head of US securitised products at the firm.
“Active management is essential to capturing opportunities in the MBS market given its complexity and the unique prepayment risk associated with these securities.
“By conducting detailed analyses of specific mortgage pools, we can mitigate risks and exploit market inefficiencies—such as variations in geography, loan characteristics, and participant motivations—with the aim of enhancing yield and improving portfolio diversification”.
Read more: Janus Henderson CLO ETF surpasses $20bn of assets
