Status under the EU Sustainable Finance Disclosure Regulation (SFDR)

Legal Entity Identifier: 635400PH5EPE3XKVPT22

The Fund is categorised as one which meets the provisions set out in Article 8 of SFDR as a product which promotes environmental and/or social characteristics and invests in companies with good governance practices. Whilst the Fund does not have as its objective a sustainable investment, it will have a minimum proportion of 20% of sustainable investments with a social objective and an environmental objective in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy.

The Sub-Fund promotes support for the UN Global Compact principles (which cover matters including human rights, labor, corruption, and environmental pollution).

The Sub-Fund promotes human health and wellbeing by applying binding exclusions.

The Sub-Fund promotes climate change mitigation.

The Sub-Fund promotes better management of environmental, social and/or governance risks by minimising its exposure to issuers with the worst ESG risk ratings.

The Sub-Fund does not use a reference benchmark to attain its environmental or social characteristics.

The Investment Manager will:

• Apply screens to exclude bond issuers deemed to be in violation of UN Global Compact principles or OECD Guidelines for Multinational Enterprises, or deemed to be causing significant environmental harm”
• Exclude bond issuers involved with the following activities (subject to revenue thresholds where shown):
  • - Adult entertainment (>= 5% of revenue)
  • - Alcohol production (>= 5% of revenue) or distribution (>=15% of revenue)
  • - Gambling (>=5% of revenue)
  • - Tobacco cultivation or production¹
  • - Recreational cannabis
  • - Nuclear weapons
  • - Controversial weapons¹
  • - Civilian firearms (>= 5% of revenue)
  • - Fossil fuels: revenues from oil, gas, coal and energy-intensive electricity over the thresholds specified in the requirements for EU Paris-aligned Benchmarks, with stricter revenue thresholds applied for oil (0%) and thermal coal (0%)¹
• Apply screens to ensure that at least 80% of the portfolio is invested in securities issued by corporations with an ESG risk rating of B or higher, according to the Investment Manager’s predictive ESG rating framework (which is based primarily on MSCI data)

¹Note that these exclusionary screens are designed to be consistent with the exclusions required for EU Paris-aligned Benchmarks.

The Investment Manager has chosen MSCI as its primary source for ESG data and research. Where coverage gaps are identified, specialist ESG data vendors or the Investment Manager’s proprietary research (including engagement with investee companies, where relevant) may be used to complement it. Portfolio managers may challenge third-party data if they consider that it is insufficient or inaccurate (if, for example, it is historic, vague, based on out-of-date sources) or if they have other information to make them doubt its accuracy. Any “override” of third-party data must be approved by the Investment Manager’s cross-functional ESG Oversight Committee.

JHI has chosen MSCI’s as its primary data source for ESG (Environmental, Social and Governance) research.

Where coverage gaps are identified, specialist ESG Data vendors or in-house research may be used to complement the ESG research. This helps ensure that consistent data and methodologies are used given an ESG measure per security type and hence can be compared correctly in the portfolio construction process.

The Responsible Investment Policy sets out the firmwide approach to ESG Integration , including JHI’s Responsible Investment Principles for long-term investment success, our approaches to Stewardship and Engagement and Firmwide Exclusions applied to investee companies.