Janus takes step toward an ETF for Bill Gross

Janus Capital Group Inc. may be getting closer to offering an ETF managed by its legendary portfolio manager, Bill Gross.
The manager late Thursday updated a four-year old request with securities regulators asking for the ability to offer a suite of ETFs.
Among the updates to the application — which was last amended in 2011 — is a new description of the first ETF Janus expects to roll out should it get approval from the Securities and Exchange Commission.
That description matches, in some cases word-for-word, the language in the prospectus for the Janus Global Unconstrained Bond Fund (JUCAX).
Mr. Gross took over the management of that fund after an abrupt exit in September from Pacific Investment Management Co.


“The initial fund will pursue opportunities across the fixed-income spectrum, including moving between sectors or across credit risk, and may have long, short, or negative duration,” Janus’ filing says.
(More: Janus CEO Weil hopes for Bill Gross-run ETF)
Even if the SEC grants Janus’ request, the fund company is under no obligation to offer such an ETF.
But Janus chief executive Richard M. Weil has indicated a desire is to bring Mr. Gross back to the ETF world.
At Pimco, Mr. Gross ran a version of the firm’s flagship Total Return Fund as an exchange-traded fund under the ticker symbol BOND, building it into one of the top actively managed ETFs on the market. That fund currently manages $2.5 billion, having lost $437 million to investor redemptions last month after Mr. Gross’ departure.
“While the fund filed with the exemptive relief, represents a potential lead offering that may be amended or refined as we go through the relief process, it’s premature to discuss specific products at this time,” Janus said in a statement.