Status under the EU Sustainable Finance Disclosure Regulation (SFDR) – Global Investment Grade Bond Fund
Janus Henderson Capital Funds plc Janus Henderson Global Investment Grade Bond 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
The Sub-Investment Adviser applies screens to exclude direct investment in corporate issuers based on their involvement in certain activities. Specifically, issuers are excluded if they derive more than 10% of their revenue from oil sands extraction, arctic oil and gas, thermal coal extraction, tobacco, or adult entertainment. Issuers are also excluded if they are deemed to have failed to comply with the UN Global Compact Principles (which cover matters including human rights, labour, corruption, and environmental pollution).
The Fund also applies the Janus Henderson Exclusion Policy, as detailed under the Prospectus section entitled “Investment Restrictions”.
The Sub-Investment Adviser may include positions in the Fund that meet the above exclusionary criteria where the Sub-Investment Adviser believes that the data used to apply the exclusions is insufficient or inaccurate.
Exclusionary screens are not applied to securitized assets.
Furthermore, the Sub-Investment Adviser carries out its ESG review (i.e., ‘extra-financial analysis’) on at least: (i) 90% of investment grade corporate bonds; and (ii) 75% of high yield securities.
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 Sub-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. Investors should note that a specific index is not designated as a reference benchmark to determine whether the Fund is aligned with the environmental characteristics promoted.
The Sub-Investment Manager may include positions in the Fund that meet the above exclusion criteria where the Sub-Investment Manager believes that the data used to apply the exclusions may be 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”). Janus Henderson Investors Europe S.A.’ (JHIESA)is a member of the Janus Henderson group incorporated in Luxembourg and is subject to SFDR as a financial market participant.
JHIESA 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 JHIESA ’s activities, JHIESA has decided not to comply with the PAI Regime at the current time. Nonetheless, JHIESA wishes to affirm its overall commitment to ESG matters. As part of this commitment, JHIESA 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.
JHIESA 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 31 October 2022 and periodic reporting will commence from 1 January 2023 for the first reference period from 31 October 2022.