Janus Henderson investors is to launch its AAA Collateralised Loan Obligation (CLO) strategy “JAAA” as an on-chain investment product.
The strategy – which is also available as a traditional exchange traded fund (ETF) – is to be seeded by $1 billion in capital from Grove, an institutional investment credit platform incubated in the Sky ecosystem.
“Last year, our AAA CLO strategy attracted the most inflows among all actively managed fixed income ETFs,” said Nick Cherney, head of Innovation at Janus Henderson (pictured).
“We’re excited to partner with Grove and Centrifuge, who share our vision for building the on-chain economy.”
The existing Janus Henderson AAA CLO ETF sits in the Morningstar Ultrashort Bond sector and boasts assets of $21.4 billion. It is designed to provide exposure to high quality AAA rated CLOs and lists the JP Morgan CLO AAA Index as the benchmark.
In a statement announcing the new on-chain product, Anil Sood, chief strategy and growth officer at Centrifuge, said while tokenised treasuries have paved the way, there’s a growing demand for more diversified, high-quality assets on-chain.
He added: “Together with Janus Henderson, we’ve brought JAAA fully on-chain, unlocking operational efficiencies and broader investor access.”
“The team behind Grove has played a critical role in unlocking the power of RWAs for DeFi,” Rune Christensen, co-founder of Sky, added.
“With the move to embrace CLOs, Grove is showcasing its expertise and innovation in helping protocols modernize and diversify their portfolios.”
