JABS will expand Janus Henderson’s offerings to meet client demand, including insurance companies, by offering an investment grade ABS ETF, the firm said in a statement.

The fund is managed by portfolio managers John Kerschner and Nick Childs who bring expertise within securitized markets and track records managing securitized ETFs.

The portfolio aims to invest in high quality securitized assets that the investment team believes can generate attractive income with low volatility. The portfolio will allocate to investment grade rated asset-backed securities , utilizing the portfolio management team’s investment process that aims to capitalize on opportunities in the market through active asset allocation, value analysis, and security selection, anchored in a rigorous analysis of yield per unit of risk.

JABS is intended to provide investors access to short-duration, high quality, predominately fixed rate securitized assets.

“Having securitized assets in their portfolio is designed to help our clients diversify risk exposures, access better yield opportunities, manage duration, and improve credit quality,” said John Kerschner, global head of securitized products and portfolio manager at Janus Henderson.

“We believe that spreads are more attractive as they have widened to or beyond their 10-year averages, which could present an attractive opportunity to invest in asset-backed securities,” Nick Childs, head of structured and quantitative fixed income and portfolio manager at Janus Henderson, added.