Janus Henderson MBS Active ETF

Issuer: Janus Henderson

Asset Class: Fixed Income

TER: 28bps

Trading Currency: USD

Pays Income: False

Listing Date: 12 May 2025

Ticker: JMBS

ISIN: IE000YMBL844

This financial instrument offers an actively managed approach to the U.S. mortgage-backed securities (MBS) market, aiming to deliver high current income and compelling total returns. It is managed by an experienced team dedicated to fixed income, employing a research-intensive, value-driven investment process. The strategy focuses on identifying agency residential and commercial MBS that present attractive risk-adjusted return potential. By deviating from a benchmark-centric approach, the portfolio managers have the latitude to position the portfolio based on their macroeconomic outlook and in-depth security analysis, seeking to capitalize on market inefficiencies and opportunities within the securitized credit space.

The investment process integrates a top-down macroeconomic assessment with rigorous bottom-up security selection. The managers analyze various factors including interest rate movements, prepayment speeds, credit quality, and market liquidity to construct a diversified portfolio. This active management allows for dynamic adjustments to the portfolio's duration, convexity, and sector allocation in response to evolving market conditions. The flexibility to navigate the complexities of the MBS market, such as prepayment risk which can significantly impact returns, is a key differentiator from passive strategies that are constrained by index rules. The focus remains primarily on securities issued by government-sponsored enterprises, aiming to mitigate credit risk.

For investors, this product can serve as a core component within a diversified fixed-income allocation or as a satellite holding to enhance yield and total return. It provides targeted exposure to a significant segment of the bond market that can offer diversification benefits relative to traditional government and corporate debt. The strategy's emphasis on high-quality, agency-backed securities seeks to provide a stable income stream while the active management component aims to generate alpha and effectively manage the unique risks inherent in the mortgage-backed securities market, potentially leading to superior risk-adjusted performance over a full market cycle.