Janus Henderson EUR Ultrashort IG Bond Paris-aligned Climate Core UCITS ETF
Legal Entity Identifier: 635400XNWVGFEYHRR234
| SFDR Classification | Article 9 |
| Reference benchmark | Solactive ISS Paris-Aligned Select 0-1 Year Euro Corporate IG Index. |
A. Summary
| No significant harm to the sustainable investment objective | The reference benchmark excludes issuers deemed in violation of social norms (e.g. the UN Global Compact), involved with controversial weapons, fossil fuels (revenue thresholds) or tobacco or causing significant environmental harm. The Investment Manager replicates the reference benchmark as far as possible and practical and also ensures that the same exclusions are applied to the actual holdings of the Sub-Fund.
This Sub-Fund considers Principal Adverse Impacts (PAIs) on sustainability factors. |
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| Sustainable investment objective of the financial product | The sustainable investment objective of the Sub-Fund is to reduce carbon emissions in Euro ultrashort investment grade bond allocations in alignment with the Paris Agreement. To achieve this objective, bonds are selected and weighted so that the Sub-Fund reflects the composition of the reference benchmark as far as practicable, targets weighted average GHG emissions lower than or equal to the reference benchmark and meets its sustainability and ESG-related selection criteria. The reference benchmark meets the criteria for an EU Paris-aligned Benchmark. | |
| Investment strategy | The Sub-Fund invests in a portfolio of fixed income securities that reflects the composition of the reference benchmark as far as practicable. The Sub-Fund may use optimisation techniques to select securities. However, it is intended that the Sub-Fund will only invest in bonds that allow the portfolio to meet the sustainability and ESG-related criteria described in the reference benchmark methodology (and below as “binding elements”). The Sub-Fund may also hold a small percentage of government or government-related bonds and cash for the purposes of efficient cash management. | |
| Proportion of investments | Minimum share of sustainable investments with an environmental objective | 90% |
| Minimum share of sustainable investments with an environmental objective not aligned with EU Taxonomy | 90% | |
| Minimum share of sustainable investments with an environmental objective aligned with the EU Taxonomy | 0% | |
| Monitoring of sustainable investment objective | Greenhouse gas emissions: the Sub-Fund targets weighted average GHG emissions lower than or equal to the reference benchmark. Note that the reference benchmark is designed to reduce weighted average GHG emissions and GHG emissions intensity by 50 % relative to the Euro ultrashort IG bond market, as represented by the Solactive 0-1 Year Euro IG Corporate Index (the “parent index”), and by 7% per annum. The reference benchmark uses Scope 1, 2 and 3 GHG emissions data provided by ISS ESG. Please refer to the reference benchmark methodology more information. | |
| Methodologies | The Sub-Fund is designed to reflect the composition of the reference benchmark as far as practicable and therefore reflects the rules governing Paris-aligned Benchmarks and the sustainability-related selection criteria specified in the reference benchmark methodology. These include a 50% reduction in weighted average GHG emissions and GHG emissions intensity relative to the parent index, followed by a 7% annual reduction, with the Sub-Fund targeting weighted average GHG emissions lower than or equal to the reference benchmark. The methodology also excludes issuers that violate established social norms, cause significant environmental harm, exceed specified fossil-fuel thresholds or are involved in certain harmful business activities. (opens in new t |
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| Data sources and processing | The Investment Manager uses external ESG research, supplemented where coverage gaps exist by specialist ESG data and proprietary research. ESG data is aligned at entity, position and fund level and is subject to data-quality controls. Some data may be estimated and, where external coverage is unavailable, appropriate proprietary research or evidence from the issuer may be used and independently assessed. | |
| Limitations to methodologies and data | The Sub-Fund is designed to track the performance of the reference benchmark. As such, it relies on the ESG and climate data provided to the benchmark administrator (Solactive), and the accuracy of the administrator in applying the reference benchmark methodology. Estimates may be used in the calculation of the reference benchmark. | |
| Due diligence | The Investment Manager applies the firmwide approach to ESG integration set out in the Responsible Investment Policy, including the use of firmwide exclusions and internal and external research. Investment teams undertake due diligence before making investment decisions, then supported by ongoing oversight and challenge from the Investment Management Business Risk, Financial Risk and Investment Compliance functions. | |
| Engagement policies | Stewardship forms an integral part of Janus Henderson’s long-term approach to investment management, with engagement generally preferred in relation to financially material sustainability risks. The firm supports a number of stewardship codes and broader initiatives and is a signatory to the UK Stewardship Code. Further information is provided in the Responsible Investment Policy. | |
| Attainment of the sustainable investment objective | The Sub-Fund is designed to reflect the composition of the reference benchmark as far as practicable and therefore reflects the rules governing Paris-aligned Benchmarks and the sustainability-related selection criteria specified in the reference benchmark methodology. The Sub-Fund targets weighted average GHG emissions lower than or equal to the reference benchmark. (opens in new tab) |
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