Important information about the Janus Henderson Global Equity Fund.
On 20 June we wrote to investors providing advance notice of updated prospectus disclosures for the Janus Henderson Global Equity Fund (the “Fund”).
As part of our ongoing commitment to make improvements to our fund documentation, we provided prior notice of new “Sustainability Approach” and “Firmwide Exclusions” sections which will be added to the fund’s prospectus on 22 July 2022. We would like to clarify that the Excluded Activity table in the Sustainability Approach (see below) also includes an additional line for Weapons Manufacturing. All other text remains the same as the investor letter:
Janus Henderson Global Equity Fund Sustainability Approach
The Fund is expected to maintain a lower carbon intensity and/or footprint than its reference benchmark.
Issuers that the Investment Adviser believes may be facing potential environmental or societal issues are subject to active engagement, the exercise of voting rights, and the proposal of action plans (where appropriate), in order to identify sustainability risks and help influence remedial change.
The Investment Adviser applies screens to avoid investing in issuers involved in the following activities:
|Excluded Activity||Exclusionary Criteria|
|Controversial Weapons||See Firmwide Exclusions policy|
|Weapons Manufacturing||≥5% of revenue|
|Fossil Fuels||≥5% of revenue|
|Tobacco Production||≥5% of revenue|
|Gambling||≥5% of revenue|
|Failure to comply with the UN Global Compact Principles (which cover matters including, human rights, labour, corruption, and environmental pollution)||Any breach|
Exclusionary screens are applied at the point of investment and are monitored on a continuous basis. If an investment becomes ineligible based on exclusionary screens it will be divested within 90 days.
Exclusionary screens are applied to direct investments and single name derivatives but are not applied to other derivatives or investments through collective investment schemes.
The Investment Adviser may invest in companies that would be excluded by the screens described above if the Investment Adviser believes, based on its own research and as approved by its ESG Oversight Committee, that the third-party data used to apply the exclusions is insufficient or inaccurate.
Janus Henderson has introduced a firmwide exclusion policy.
Presently, investment is not permitted in entities involved in the current manufacture of, or minority shareholding of 20% or greater in a manufacturer of Controversial Weapons, namely:
- Cluster munitions
- Anti-Personnel mines
- Chemical weapons
- Biological weapons
Classification of issuers is primarily based on activity identification fields supplied by our third-party ESG data providers. This classification is subject to an investment research override in cases where sufficient evidence exists that the third-party field is not accurate or appropriate. In any scenario where a portfolio position is identified as not meeting this exclusion criteria for any reason (legacy holding, transition holding, etc.) the portfolio manager shall be granted 90 days to review or challenge classification of the issuer if appropriate. After this period, in the event an investment research override is not granted divestment is required immediately under normal market trading circumstances.
When do the changes take place?
The changes will become effective from 22 July 2022. All documents will be updated to reflect the changes from this date.
The investment process, the way the Fund is managed and the risk profile of the Fund will be unchanged as a result of this update.
If you have any queries about the Janus Henderson Global Equity Fund or require any further information, please call our Client Services Team on 0800 832 832 (or +44 1268 443 914 if you are calling from overseas) between 9am and 5.30pm Monday to Friday.