Janus Henderson leveraged the capabilities of her indirect property team to launch an actively managed US real estate ETF.
Listed NYSE Arcathen Janus Henderson, US Real Estate ETF (JRE US) invests in listed equity securities of US and, to a lesser extent, Canadian real estate and related industries.
The fund is managed by experienced portfolio managers Greg Cool and Danny Greenberger, both of whom have over 15 years of industry experience.
Kohl and Greenberger are members of Janus Henderson’s Global Real Estate Group, which manages over $ 3 billion in assets worldwide.
Securities that can be selected by portfolio managers include common shares, preferred shares, REITs and real estate companies of any market capitalization, and they are allowed to invest in company shares through an initial public offering.
To be considered eligible for selection, companies must receive at least 50% of their proceeds from the ownership, construction, production, financing, management, operation, sale or development of real estate, or have at least 50% of their book value in real property. property assets or ownership of real estate, which account for 50% or more of the value of the enterprise.
The fund is classified as non-diversified and is allowed to hold larger positions in fewer companies.
Although the main focus will be on the United States, the fund can invest up to 15% of its net assets in securities of Canadian issuers.
When selecting investments for a fund, portfolio managers take a bottom-up approach that uses their knowledge of the issuers, including factors such as the company’s balance sheet, valuation, management effectiveness, and risk-adjusted return. Specifically, portfolio managers will target real estate companies that they believe are the future of the sector, including cell towers, data centers, gaming REITs, and cold rooms.
Portfolio managers can sell a share if they believe that its future prospects are accurately reflected in the market price or if their initial investment thesis has changed.
The fund may hold a portion of its assets in cash or other short-term instruments such as money market instruments or money market funds when deploying new capital for liquidity management, redemption management or defensive purposes, including navigating in unusual market conditions. …
The fund can also lend portfolio securities up to one third of its total assets.
There are currently 20 holdings. Key positions currently include Prologis (11.76%), Alexandria Real Estate Equities (7.26%), Sun Communities (6.83%), VICI Properties (6.54%), UDR (5.50%) , Essex Property Trust (5.46%), Duke Realty (5.44%), Equity LifeStyle Properties (4.98%), Invitation Homes (4.97%) and Spirit Realty Capital (4.44%).
For the purpose of evaluating the effectiveness, the fund is compared with FTSE Nareit Equity REITs Index…
Commenting on the launch, Nick Cherney, Head of Exchange Products for Janus Henderson, said: “The supply and demand dynamics of the real estate market is constantly evolving, making it an asset class that can be actively managed to significantly add value to investors. Since many investors are under-employed in real estate, JRE brings Janus Henderson’s expertise in this asset class to ETF investors seeking access to ETF diversification, income, inflation protection and potential risk-adjusted return. ”
Greg Cool added: “Offering attractive valuations, tailwinds of structural and long-term growth, and the ability to provide investors with inflation protection, real estate is an asset class that can generate significant shareholder value and compelling returns in the coming years.”
The fund is credited with $ 10 million and has a net expense ratio of 0.65%.
It will compete with other actively managed US real estate ETFs including Nasdaqlisted ALPS Active REIT ETF (REIT USA) and registered on NYSE Arca Invesco Active US Real Estate ETF (PSR US)…