Global asset manager Janus Henderson has agreed to acquire London-based ETF provider Tabula Investment Management as the firm seeks to capitalize on the growing demand for actively managed ETFs in Europe.

Janus Henderson is the fourth-largest provider of actively managed fixed income ETFs by AUM.

Similar to trends in the US, the European ETF market is increasingly adopting active management strategies. Last year, nearly 10% of new European ETFs were actively managed, and assets in these ETFs grew by almost 50%.

This trend presents a significant opportunity for asset managers to expand their offerings and meet evolving investor preferences in Europe.

Janus Henderson will be seeking to build upon its active ETF proposition in the US. While the firm has active equity ETFs, it is perhaps better known for its fixed income offering, being the fourth-largest global provider of active fixed income ETFs with $16.4 billion in related assets under management.

The largest ETF in the line-up is the $9.2bn Janus Henderson AAA CLO ETF (JAAA US) which provides exposure to highly rated collateralized loan obligations (CLOs). The firm also offers the $600m Janus Henderson B-BBB CLO ETF (JBBB US) which targets CLOs with credit ratings between B- and BBB+ inclusive.

Established in 2018, Tabula’s ETF business houses over $500 million in AUM across a range of passive funds focused on fixed income and sustainable investment solutions. Janus Henderson expects to retain all existing Tabula products and will utilize the platform to launch a range of new active products.

Financial terms of the transaction have not been disclosed, and the acquisition is expected to close in the second quarter of 2024 subject to customary closing conditions including regulatory approvals.

Ali Dibadj, CEO of Janus Henderson Group Investors, commented: “We are extraordinarily pleased to be able to partner with the talented professionals at Tabula to help shape the coming evolution in ETFs for European and global investors. This acquisition positions us at the forefront of this burgeoning trend, enabling us to leverage early opportunities for growth and innovation. Tabula’s existing infrastructure and ecosystem offers us instant access to an institutional platform that we believe will position Janus Henderson as a trusted and credible player in the European ETF market, and combining the deep expertise of both firms will allow us to deliver on the continuously evolving needs of our clients.”

Michael John Lytle, CEO of Tabula Investment Management, added: “We are very excited to join Janus Henderson to further our common mission to offer investors market-leading investment solutions. Tabula has established a very effective independent ETF business through offering differentiated fixed income ETFs. Janus Henderson is the perfect partner with whom to create a market-leading multi-asset ETF toolkit.”