Janus Henderson Horizon Sustainable Future Technologies Fund
This financial product (referred to as the Fund) has sustainable investment as its objective, as defined under Article 9 of the Disclosure Regulation.
The Fund’s investment objective aims to provide capital growth over the long term by investing in technology-related companies that contribute to the development of a sustainable global economy.
The Investment Manager uses a thematic framework incorporating environmental and social objectives at all stages of its investment process. The Fund’s investment universe is determined by the application of positive screening criteria based on the sustainable technology investment themes of the Investment Manager.
Environmental objectives are addressed through a focus on technologies enabling the transition to a low carbon economy such as clean energy technology, sustainable transport, resource and productivity optimisation, smart cities and low carbon infrastructure. Social objectives are addressed through a focus on technologies that invest in human capital and facilitate wider access to a range of services that are beneficial to health, inclusion and wellbeing such as health technology, digital democratisation and data security. You can find more information on the investment themes in the Investment Principles document contained on the website: www.janushenderson.com
Sources of data include a wide range of specialist ESG research materials, internal and external research which includes data from companies, industry bodies and organisations, academia, intergovernmental organisations and through stakeholder voting and engagement. Such data is integrated into our investment and risk management systems and procedures as part of the investment process of the Fund.
The Fund uses positive screening criteria across the entirety of the portfolio to ensure that the Fund invests in companies that derive at least 50% of their current or future expected revenues attributable to goods and services within the Investment Manager’s sustainable technology themes making a positive impact on society and the environment, aligning with the UN’s Sustainable Development Goals, which in turn contributes to the six environmental objectives. In addition, it applies negative (avoidance) screening criteria across the entirety of the portfolio to ensure that the Fund avoids investing in companies involved in activities that are significantly harmful to society or to the environment (occasionally, up to a de minimis limit, as further described in the Investment Principles document). The Investment Manager anticipates that the negative screening will decrease the Fund’s investment universe by at least 20% or more. The avoidance criteria are as follows:
|Production of Alcohol||Fossil fuel extraction & refining||Animal testing*|
|Armaments||Fossil fuel power generation||Fur|
|Gambling||Chemicals of concern||Genetic engineering|
|Pornography||Contentious industries||Intensive farming|
|Tobacco||Nuclear power||Meat & dairy production|
Fundamental research enables the Investment Manager to navigate the hype cycle (different stages in the development of a technology from conception to widespread adoption) of sustainable technology as well as identifying companies that are making a positive contribution to environmental and social challenges. The investment process considers and monitors climate and environmental indicators as well as social and employee matters as part of its investment due diligence process and responds to these through exercising voting rights, active engagement and action plans that have a bearing on investment decisions. Qualitative and quantitative data related to sustainability factors are integrated into the investment process at every step including but not limited to the evaluation of unexpected earning potential, valuation and risk management.
Further information can be found in the Prospectus for the Fund.
Principal adverse impacts (PAI)
The EU’s Sustainable Finance Disclosure Regulation (“SFDR”) requires financial market participants to make a ‘comply or explain’ decision as to whether they consider principal adverse impacts (“PAIs”) of investment decisions on sustainability factors in accordance with a specific regime outlined in SFDR (the “PAI Regime”). Henderson Management S.A. (“HMSA”) is a member of the Janus Henderson group incorporated in Luxembourg and is subject to SFDR as a financial market participant.
HMSA is supportive of the general policy aims of the PAI Regime, to improve transparency to clients, investors and the market, as to how financial market participants integrate consideration of the adverse impacts of investment decisions on sustainability factors. Taking into account the size, nature and scale of HMSA’s activities, HMSA has decided not to comply with the PAI Regime at the current time. Nonetheless, HMSA wishes to affirm its overall commitment to ESG matters. As part of this commitment, HMSA currently manages products that are classified under either Article 8 or Article 9 of SFDR. More information on Janus Henderson’s overall commitment to ESG matters is also described in our ESG overview.
HMSA will keep its decision not to comply with the PAI Regime under regular review.
Principal adverse impacts - financial product disclosure
PAIs are considered at the product level.1 The table below sets out where PAI is considered through the use of exclusionary screens:
|Principal Adverse Impact||How is PAI considered?|
|GHG Emissions||Exclusionary screens|
|Carbon Footprint||Exclusionary screens|
|GHG Intensity of Investee Companies||Exclusionary screens|
|Exposure to companies active in fossil fuel||Exclusionary screens|
|Violations of UNGC and OECD||Exclusionary screens|
|Exposure to controversial weapons||Exclusionary screens|
1 This was effective as of 1 June 2022 and periodic reporting will commence from 1 January 2023 for the first reference period from 1 June 2022.