Institutional Portfolio Shifts
Institutional Investors Significantly Reshape Their Holdings in Janus AAA CLO ETF
Anonymous
Key Points
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Waverly Advisors’ JAAA position represented about 0.7% of its portfolio and ranked as the firm’s 24th-largest holding; it owned approximately 0.43% of the ETF after purchasing 2,258,028 additional shares.
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Bank of America was the largest institutional holder cited, owning 40,377,740 JAAA shares valued at about $2.03 billion after increasing its position by 33.8% in the first quarter.
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Allianz SE established a new JAAA position in the fourth quarter valued at approximately $1.33 billion, while LPL Financial held 13,272,736 shares worth about $671.3 million.
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JAAA was launched on Oct. 16, 2020, and is managed by Janus Henderson; its strategy seeks current income by selecting investment-grade floating-rate CLO securities of various maturities from issuers around the globe.
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Several smaller investors initiated JAAA positions during the reporting periods, including Karpus Management, Gunpowder Capital Management’s Oliver Wealth Management, Montgomery Financial Services and Turim 21 Investimentos.
Institutional investors reshaped their positions in the Janus Henderson AAA CLO ETF during the second quarter, with major players expanding stakes in the investment-grade floating-rate bond fund. watchlistnews reported that Waverly Advisors nearly multiplied its holding by 11 times, purchasing 2.3 million additional shares to reach 2.5 million shares valued at about $126 million.
Bank of America remained the largest institutional holder with 40.4 million shares worth $2.03 billion after boosting its position by 33.8%. Allianz SE and LPL Financial also maintained substantial stakes, signaling strong institutional confidence in JAAA's strategy of seeking current income from floating-rate collateralized loan obligations issued globally.
Waverly Advisors Builds Major JAAA Position
Waverly Advisors made the most dramatic move in the quarter, purchasing 2.3 million shares to reach a 950.8% increase in its JAAA stake. The position grew to 2.5 million shares valued at approximately $126 million, representing about 0.7% of Waverly's overall portfolio. watchlistnews noted the holding ranked as Waverly's 24th-largest investment after the purchase.
Waverly's expanded position represented about 0.43% of the entire ETF. The move signals confidence in JAAA's strategy of selecting investment-grade floating-rate CLO securities across various maturities. JAAA shares were trading near $50.58, sitting close to the midpoint of the fund's 52-week range.
Bank of America Extends Dominance as Largest Holder
Bank of America remained the institutional powerhouse in JAAA, holding 40.4 million shares worth approximately $2.03 billion after a 33.8% increase. The financial giant's massive stake underscores institutional appetite for the fund's investment-grade CLO strategy. watchlistnews reported Bank of America's position dwarfed other major holders by a significant margin.
Allianz SE established a new JAAA position valued at $1.33 billion in the fourth quarter, while LPL Financial held 13.3 million shares worth $671.3 million. These large positions reflect institutional demand for JAAA's income-focused approach targeting floating-rate securities.
Mixed Signals From Smaller Institutional Players
While major institutions expanded holdings, some smaller investors moved in opposite directions. Second Line Capital cut its JAAA position by 82.3%, leaving just 4,982 shares worth about $253,000. This pullback contrasted sharply with the broader trend of institutional accumulation.
Several emerging institutional players initiated new JAAA positions during the quarter, including Karpus Management, Montgomery Financial Services, and Oliver Wealth Management. These new entries joined Ameritas Advisory Services, which more than doubled its stake, and IFP Advisors, which raised holdings by 6.9% to 228,282 shares valued at $11.5 million.
JAAA's Growth Since 2020 Launch
JAAA was launched on October 16, 2020, and is actively managed by Janus Henderson to seek current income through carefully selected floating-rate CLO securities. The fund sources investment-grade bonds of various maturities from issuers around the globe. The fund's strategy appeals to institutional investors seeking steady income in a volatile rate environment.
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