DENVER, June 09, 2016 (GLOBE NEWSWIRE) -- Janus Capital Group, Inc., (NYSE:JNS) today announced the launch of four thematic ETFs that allow investors to target companies that may benefit from global demographic and consumer shifts.
These themes include long‐term care for the elderly, an increased focus on health and fitness, the treatment and care for obesity and an increased demand for organic products.
"Changes in demographics and lifestyle are altering the investment landscape," said Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group. "These thematic Exchange Traded Funds are designed to capitalize on those shifts to give advisors new tools that can help clients achieve better financial outcomes."
The ETFs are overseen by the Janus Exchange Traded Products Team and are not actively managed products.
Long‐Term Care Is a Life‐Long Trend
Increasing longevity is lifting demand across the long‐term care industry. The Long‐Term Care ETF (NASDAQ:OLD) seeks exposure to companies globally that are positioned to profit from owning or operating senior living facilities, specialty hospitals, providing nursing services and biotech companies for age‐related illnesses.
By 2050, the U.S. population aged 65+ will almost double to 83.7 million, while those aged 85+ will increase four times to 19 million1. With 10,000 boomers set to retire every day in the U.S. through 20302, one in four 65‐year‐olds can expect to live until at least 903, with the result that the $132 billion U.S. nursing care facilities industry4 will need 1.2 million more employees by 20255.
Invest in Our Passion for Fitness
The increasing passion for fitness means the global population is consuming more from companies that serve health needs. The Health and Fitness ETF (NASDAQ:FITS) seeks exposure to companies in nutrition, sports apparel and fitness technology and equipment, and the health club sector, which are poised to take advantage of the growing trend.
Since 2008, U.S. health club memberships have climbed almost 19 percent annually, taking revenues to $24.2 billion in 20146. Sales of fitness trackers and other wearable technologies may double to $5.4 billion by 20197, while revenue from footwear and other sports apparel has grown at a 42 percent pace over the past seven years8.
The Natural Way to Invest
Investors can participate in the potential benefits of our increasing desire for naturally derived food and personal care items through The Organics ETF (NASDAQ:ORG), which seeks exposure to companies that service, produce, distribute, market or sell organic food, beverages, cosmetics, supplements or packaging.
Sales of organic products in the U.S. have surged tenfold over 17 years to $39 billion in 2014 and there are now more than 19,500 organic farming operations in the U.S., helping to satisfy an expected 16 percent rise in demand globally for organic food annually through 20209. And it’s not just food: the market for natural cosmetics, hair and skin care may reach $16 billion by 202010.
The Battle Against Obesity
The Obesity ETF (NASDAQ:SLIM) seeks exposure to companies that provide treatment and care for obesity and obesity‐related disease, including biotechnology and pharmaceutical, healthcare and medical device companies, other health care firms, the weight loss market and supplement companies.
More than 640 million people globally are classified as obese, a 600 percent rise in 40 years11. Worldwide, more than 10 percent of men and 14 percent of women are now classified as obese – numbers that are predicted to climb to 18 percent of men and 21 percent of women by 202512. In the U.S., 75 percent of men and 67 percent of women ages 25 and older are now either overweight or obese13. Globally, obesity and related treatment costs $2 trillion a year in healthcare and lost productivity14. As a result, the low‐calorie food market in the U.S. is projected to be worth $10.4 billion by 201915.
About Janus Capital Group, Inc.
Janus Capital Group Inc. ("JCG") is a global investment firm dedicated to delivering better outcomes for clients through a broad range of actively managed and smart beta investment solutions, including fixed income, equity, alternative and multi‐asset class strategies. It does so through a number of distinct asset management platforms, including investment teams within Janus Capital Management LLC ("Janus"), as well as INTECH Investment Management LLC ("INTECH"), Perkins Investment Management LLC ("Perkins") and Kapstream Capital Pty Limited (“Kapstream”), in addition to a suite of exchange‐traded products. Each team brings distinct asset class expertise, perspective, style‐specific experience and a disciplined approach to risk. Investment strategies are offered through open‐end funds domiciled in both the U.S. and offshore, as well as through separately managed accounts, collective investment trusts and exchange‐traded products. At the end of March 2016, JCG's complex‐wide assets totaled approximately $191.3 billion for shareholders, clients and institutions around the globe. Based in Denver, Colorado, JCG also has offices in London, Milan, Singapore, Hong Kong, Tokyo, Melbourne, Sydney, Paris, The Hague, Zurich, Frankfurt, Dubai and Taipei, as well as Boston, Mass., Darien, Conn., Princeton, N.J., West Palm Beach, Fla., Chicago, Ill., and Newport Beach, Calif.
Please consider the charges, risks, expenses, and investment objectives carefully before investing. For a prospectus containing this and other information, please call 877.33JANUS (52687) or download the file from janus.com/ETFs. Read it carefully before you invest or send money.
Investing involves risk, including the possible loss of principal and fluctuation of value. Performance depends upon the underlying index in which the Fund invests. There is no assurance the stated objectives will be met.
Enhanced Beta or Smart Beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. No investment strategy can ensure a profit or eliminate the risk of loss.
Funds that concentrate investments in a single sector will be more susceptible to factors affecting that sector and more volatile than funds that invest in many different sectors.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Ordinary brokerage commissions apply and will reduce returns.
ETF shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only.
OBJECTIVE: The Long‐Term Care ETF (OLD) seeks investment results that correspond generally to the performance, before fees and expenses, of an index which is designed to track the performance of companies globally that are positioned to profit from providing long‐term care to the aging population, including companies owning or operating senior living facilities, nursing services, specialty hospitals, and senior housing, biotech companies for age‐related illnesses and companies that sell products and services to such facilities.
OBJECTIVE: The Health and Fitness ETF (FITS) seeks investment results that correspond generally to the performance, before fees and expenses, of an index which is designed to track the performance of companies globally that are positioned to profit from servicing those participating in health and fitness activities, including companies whose business is focused on fitness technology/equipment, sports apparel, nutrition, and sports/fitness facilities.
OBJECTIVE: The Organics ETF (ORG) seeks investment results that correspond generally to the performance, before fees and expenses, of an index which is designed to track the performance of companies globally that are positioned to profit from increasing demand for organic products, including companies which service, produce, distribute, market or sell organic food, beverage, cosmetics, supplements, or packaging.
OBJECTIVE: The Obesity ETF (SLIM) seeks investment results that correspond generally to the performance, before fees and expenses, of an index which is designed to track the performance of companies globally that are positioned to profit from servicing the obese, including biotechnology, pharmaceutical, healthcare and medical device companies whose business is focused on obesity and obesity related disease, including diabetes, high blood pressure, cholesterol, heart disease, stroke and sleep apnea, and companies focused on weight loss programs and supplements, and plus sized apparel.
The ETFs are new and have less than one year of operating history.
Janus Capital Management LLC is the investment adviser and ALPS Distributors, Inc. is the distributor. ALPS is not affiliated with Janus, INTECH, Perkins or Kapstream.
1: Social Security Administration 2016, U.S. Census Bureau 5/2014
2: Pew Research Center 12/2010
3. Federal Interagency Forum on Aging‐Related Statistics 2012
4: Kalorama Information, IBIS World 2/2016 (U.S.)
5: Urban Institute Study as of 2015, Agrentum 1/2016, (U.S.)
6: International Health, Racquet & Sportsclub Association, as of 6/30/2015 (U.S.)
7: Parks Associates, as of 3/25/2015. (Global)
8: Morgan Stanley Research, as of 10/ 30/2015. (Global)
9: TechSci Research, Organic Trade Association, as of 8/2015. (Globally, the organic food market is projected to grow at 16% through 2020. In 2015 there were 19,500 organic farms in the U.S. with more than 3,000 transitioning to organic product.)
10: Grand View Research, as of 8/2015. (Global, 9.8% growth rate of organic skin care products projected through 2020.)
11, 12, 13: World Health Organization, Washington University School of Medicine, NCD Risk Factor Collaboration, as of 4/2016. (Projected obesity rates of 18%/21% on a global basis with 75%/67% of the population overweight or obese in the U.S.)
14: National Center for Weight & Wellness at George Washington University and the McKinsey Global Institute, as of 4/2015. (Global costs of the obesity epidemic estimated at $2 trillion annually with indirect costs in the U.S. totaling $305 billion.)
15: Euromonitor International, Marketdata Enterprises, Transparency Market Research, as of 11/2012. (Global health and wellness market expected to reach $1 trillion by 2017. U.S. weight loss market valued at $64 billion in2014 and low‐calorie food market projected at $10.4 billion by 2019.)
Source:Janus Capital Group Inc.