Janus Henderson introduces its first active ETFs listed in Europe

Janus Henderson has debuted its first actively managed ETF listed in Europe, just three months after acquiring ETF provider Tabula Investment Management. The Janus Henderson Tabula Japan High Conviction Equity UCITS ETF will first be listed on Xetra, with additional listings planned for the London Stock Exchange and Borsa Italiana.

It will invest in 20 to 30 holdings, regardless of market cap. The firm said it will look for companies that are set to benefit from structural themes and trends in the Japanese equity market. Janus Henderson will charge an 0.49% OCF for the product.

Investment Opportunities in Japan

Junichi Inoue, head of Japanese equities at Janus Henderson Investors, stated, “We believe now is the perfect time to invest in Japan. With a stable inflation outlook and ongoing corporate governance reforms, companies are becoming more shareholder-friendly, presenting stronger investment opportunities.

“Our extensive experience in Japanese equity investing, driven by stock-specific analysis, allows us to target companies with greater potential for delivering superior returns to our clients.”

Michael John Lytle, CEO of Tabula, remarked, “Until recently, ETFs were primarily associated with passive investing, which has led to significant market growth. However, most UCITS assets are still in actively managed funds. The efficiency of the ETF structure makes it an ideal vehicle for offering compelling content to clients.

“The launch of JCPN not only broadens Janus Henderson’s product offerings but also greatly enhances the firm’s competitive position in the European ETF market, paving the way for future growth and innovation.”

The Rise of Actively Managed ETFs

While most ETFs have historically been passive index-tracking funds, actively managed ETFs have surged in popularity in recent years, now representing about $1 trillion of the industry’s $14 trillion in assets under management, according to ETFGI.

Most of this growth has occurred in the U.S., but the European market is beginning to catch up. Active ETFs accounted for 8.4% of net inflows to all ETFs in the third quarter, significantly outpacing their 2.2% share of total assets. Their assets have surpassed $50 billion for the first time, doubling in the last 18 months. Recently, Dutch asset manager Robeco launched its first active ETFs, while Cathie Wood’s Ark Invest, BNP Paribas Asset Management, and American Century have introduced their first active ETFs in Europe this year. BlackRock’s iShares has also released its first active equity ETFs, with Jupiter Asset Management and Eurizon Capital set to follow.

“Active ETFs currently make up over 2% of total European ETF assets, indicating substantial growth potential,” said Monika Calay, director of manager research at Morningstar. “With active ETFs capturing 7-8% of all ETF flows over the past two quarters, they are transitioning from being a minor detail to a significant element of Europe’s investment landscape.”

Calay noted that this growth reflects not only investor interest but also asset managers’ increasing readiness to tackle various structural challenges, such as platform limitations in the UK and commission fee models in continental Europe that favor traditional active mutual funds.

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