Evolved from strategies first applied by Payden to global multi sector portfolios and offered (in the US) since  2012, the new UCITS  is actively managed and will seek to outperform the Bloomberg Global Aggregate Corporate Index.

The firm writes that this new fund has been launched in response to institutional investors’ requirements to lock yield into their fixed income portfolios at a time when leading central banks (with the exception of the Bank of Japan) are reducing interest rates with a concomitant effect on bond yields.

“The Fund is well placed  to enable investors to take advantage of the higher yields currently available across the global spectrum of investment grade bonds with a specific focus on enhancing value through active management to generate superior risk-adjusted returns,” says Frasat Shah, Senior Vice President.

“Positions in the fund reflect our key, top-down macroeconomic views with an emphasis on generating alpha through bottom-up credit selection. Our approach is team-based with different perspectives influencing position sizes. The fund is constructed so that no single position drives performance.”

“We aim to identify securities that have characteristics that we believe are mispriced and that offer superior risk adjusted return potential. Examples include opportunities in the primary market, fallen angels, relative value across the capital structure, e.g. subordinated debt, secured bonds, floating rate bonds, etc.” Frasat Shah concludes.

Payden Global Investment Grade Corporate Bond Fund has permitted allocations to  opportunistically invest in sectors such as high yield, emerging markets or securitised debt. Active positions in the Fund are diversified to limit idiosyncratic issuer specific risks. The investment process relies on strong collaboration between the strategy team, credit analysts, economists and traders.

Initially, the new Fund – Article 8 under the EU’s Sustainable Finance Disclosure Regulation classification – will be offered in US dollar, pound sterling and euro share classes. New currency share classes will be added in response to investor requirements.  Currency risk is typically hedged to the currency of the share class.

Janus Henderson will be serving as a sub-adviser to the LTF, managing the fund’s day-to-day operations and portfolio through Tabula, a wholly owned subsidiary.

The firm writes that this synergy between Tabula’s specific investment tools, which will be crucial to ensuring the fund meets the high standards expected by institutional investors, and Janus Henderson’s 90-year track record of financial expertise, will bring traditional investment products to on-chain capital markets, realising untapped potential in the immediate term.

“This collaboration represents a significant step forward in bridging traditional and decentralised finance, by bringing robust institutional collateral pools into decentralised autonomous organisation and stablecoin ecosystems”, says Nick Cherney, Head of Innovation at Janus Henderson. “Our innovation strategy is focused on preparing for the possibility that blockchain technology will transform traditional finance in the long term, and this partnership represents a unique opportunity to help shape this future, while also providing stable and compliant solutions for on-chain markets”.

The firm writes that blockchain readiness and tokenisation are key pillars underpinning Janus Henderson’s innovation strategy, and the decision to partner with Anemoy and Centrifuge in this way reflects the firm’s commitment to digital assets and its desire to embrace disruptive financial technologies.

“By collaborating with companies who are critical to the transition of asset and wealth management onto distributed ledger technology, Janus Henderson is adopting a leadership role in the new age of digital disruption in financial markets, positioning itself as a serious partner for future blockchain opportunities.”

“As the LTF will be tokenised using Centrifuge’s blockchain technology, this will enable it to be distributed to over USD170 billion in idle capital on-chain. Anemoy, which owns the fund, plays a vital role at the intersection of traditional and decentralised finance, acting as a strategic conduit for Janus Henderson’s successful entry into this digital space.”

Janus Henderson recently announced that it had entered into an agreement to acquire a majority stake in Victory Park Capital Advisors, LLC (“VPC”), a global private credit manager providing customized solutions to both established and emerging businesses, including decentralised finance. The VPC acquisition further expands Janus Henderson’s private credit and institutional capabilities, and along with the acquisition of Tabula, demonstrates the firm’s commitment to client-led innovation, the firm says.

“We are thrilled to be collaborating with Janus Henderson and Centrifuge on this fund”, says Anil Sood, co-founder of Anemoy. “Janus Henderson is entrusted with over USD360 billion in assets, has a 90-year legacy of investment excellence, and a client-driven solutions focus; we could not think of a better partner with which to progress tokenized innovation”.

Martin Quensel, co-founder of both Anemoy and Centrifuge, says: “This partnership underscores our commitment to pioneering the integration of traditional financial products with cutting edge blockchain technology, creating new opportunities for investors, and advancing the decentralised finance ecosystem”.

“The intersection of DeFi, TradFi, and systematic investing is an area that should create huge opportunities for investors in the coming years.  It is a natural overlap between the rapid expansion of ETF solutions and the need to underpin digital investments with stable, liquid stores of value, like US Treasury bills” comments Michael John Lytle, Tabula’s CEO.

Utilising a public blockchain with permissioned access controls, and limiting subscriptions to investors with whitelisted wallets, is intended to mitigate the operational and compliance risks that have previously hindered widespread institutional adoption of tokenized funds.

“We are delighted to be working with Janus Henderson and Anemoy to not only address key challenges in fund management, but also to open the door to scalable solutions that have the potential to transform the financial industry”, says Bhaji Illuminati, CMO at Centrifuge. “The Anemoy Liquid Treasury Fund is a good example of how traditional finance can leverage distributed ledger technology to unlock new opportunities in the blockchain space”.