Status under the EU Sustainable Finance Disclosure Regulation (SFDR) - Pan European Absolute Return Fund
Janus Henderson Fund – Pan European Absolute Return Fund
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.
Binding Investment Limitations
In order to meet the environmental and/or social characteristics promoted by the Fund, the Investment Manager applies the following binding criteria to the selection of the underlying assets as part of its investment decision-making process:
- The investments made by the Investment Manager comprise long and short positions. The Investment Manager applies screens to its long positions to exclude direct investment in issuers based on their involvement in certain activities. Specifically, issuers are excluded if they derive more than 10% of their revenue from thermal coal extraction, shale energy extraction, oil sands extraction, or arctic oil and gas drilling and exploration.
- Issuers are excluded if they are deemed to have failed to comply with the UNGC Principles (which cover matters including human rights, labour, corruption and environmental pollution.
- As part of the investment strategy applied to the long positions held in the Fund, the Investment Manager also excludes the bottom 10% of issuers based on third party ESG risk scoring criteria.
Sources of data include a wide range of specialist ESG research materials, internal and external research which includes data from data providers, industry bodies and organisations, academia, and intergovernmental organisations. Such data is integrated into the Investment Manager’s investment and risk management systems and procedures as part of the investment process.
Further information can be found in the Prospectus for the Fund.
Information on how the environmental or social characteristics are met
All investments are monitored for compliance to the above forementioned negative screening criteria to ensure that they meet the environmental and/or social characteristics promoted by the Fund.
The Investment Manager may include positions in the Fund that meet the above exclusionary criteria based on third party data where the Investment Manager believes, based on its own research, that the data used to apply the exclusions is insufficient or inaccurate.
A description of the extent to which environmental and/or social characteristics are met will be available as part of the annual report. This information will also be published on this website once available.
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.