Status w ramach Rozporządzenia UE w sprawie ujawniania informacji związanych ze zrównoważonym rozwojem w sektorze usług finansowych (SFDR)

Janus Henderson Horizon Fund – Pan European Smaller Companies Fund

Legal entity identifier: 213800PTNMP9V9T45J20

A. Podsumowanie

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 10% 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. See “B. No Sustainable Investment Objective” below for further details.

The Fund promotes climate change mitigation, avoiding issuers with a high carbon intensity and which do not have a credible transition strategy based on the Investment Managers proprietary methodology or it meets the Investment Managers alternative criteria on engagement or ESG Rating, and support for the UNGC Principles (which cover matters including human rights, labour, corruption and environmental pollution). The Fund also seeks to avoid investments in certain activities with the potential to cause harm to human health and wellbeing by applying binding exclusions. In addition, the Fund invests a minimum of 10% of its net asset value in sustainable investments. The Fund does not use a reference benchmark to attain its environmental or social characteristics.

The Fund seeks capital growth through investment in the pan European smaller companies equity markets. The binding elements of the investment strategy described below are implemented as exclusionary screens which are coded into the compliance module of the Investment Manager’s order management system utilising a third-party data provider on an ongoing basis. The exclusionary screens are implemented on both a pre and post trade basis enabling the sub investment advisor to block any proposed transactions in an excluded security and identify any changes to the status of holdings when third-party data is periodically updated.

The Investment Manager uses specific screens to help achieve some of the promoted characteristics. For example - to promote climate change mitigation, screens are applied to avoid investment in certain high carbon activities, and it is expected that this will result in the fund having a lower carbon profile. Another example is that to promote support for the UNGC Principles, screens are applied so that the Fund does not invest in issuers that are in breach of the UNGC Principles based on third party data and/or internal research.

The Investment Manager applies screens 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 oil sands extraction, arctic oil and gas, thermal coal extraction, or tobacco. 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). Further, the Investment Manager uses a pass/fail test to determine investments which are deemed sustainable investments, meaning that each holding must meet all three of the requirements below:

1. based on revenue mapping to UN Sustainable Development Goals or having a carbon emissions target approved by the Science Based Targets initiative (SBTi), it contributes to an environmental or social objective;
2. nie powoduje znaczącej szkody dla jakichkolwiek celów środowiskowych lub społecznych zrównoważonych inwestycji; oraz
3. stosuje dobre praktyki z zakresu zarządzania.

The Investment Manager may invest in issuers with a high carbon intensity¹ (other than those excluded as described above) if it determines that such issuers have a credible transition strategy, based on its proprietary methodology described below, or it meets the Investment Managers alternative criteria on engagement or ESG Rating. In accordance with the Investment Manager’s proprietary methodology, a company will only be considered as having a credible transition strategy if it has at least one of the following:

• a science-based emissions target or a verified commitment to adopt a science-based emissions target (approved or verified by SBT – https://sciencebasedtargets.org/, or equivalent ); or
• a climate score of B or higher (score from CDP – https://www.cdp.net/en, or equivalent); or
• 30% of future gross capital expenditure and/or research and development to sustainability aligned projects, in accordance with the Investment Manager’s methodologies.

If a company does not currently have a credible transition strategy in place, the Investment Manager may still invest if:

• it believes that, through its engagement with the company, the company will adopt a science-based emissions target or carbon reduction goal (If the company does not achieve a “pass” rating within 24 months, it will divest and screens will be applied to exclude the issuer.); or
• it demonstrates superior ESG risk management by achieving an ESG rating of AA or higher (rating from MSCI – https://www.msci.com/, or equivalent).

Przy ocenie zasadności strategii przejściowej mogą być stosowane również dodatkowe kryteria.

Na potrzeby doktryny AMF analiza pozafinansowa lub rating, jak zostało to opisane powyżej, jest wyższy niż:

1. 90% w przypadku akcji emitowanych przez duże spółki kapitałowe z siedzibą w krajach rozwiniętych, papierów dłużnych oraz instrumentów rynku pieniężnego o ocenie wiarygodności kredytowej na poziomie inwestycyjnym, państwowych papierów dłużnych emitowanych przez kraje rozwinięte.
2. 75% w przypadku akcji emitowanych przez duże spółki kapitałowe z siedzibą w tzw. krajach wschodzących, akcji emitowanych przez małe i średnie spółki kapitałowe, papierów dłużnych oraz instrumentów rynku pieniężnego o ocenie wiarygodności kredytowej wskazującej na wysoką rentowność, a także państwowych papierów dłużnych emitowanych przez tzw. kraje wschodzące.

Menedżer inwestycyjny może inwestować w spółki, które zostałyby wykluczone na podstawie opisanych powyżej filtrów, wyłącznie jeśli menedżer inwestycyjny uzna, w oparciu o własne badania i zgodnie z zatwierdzeniem przez Komitet Nadzoru ESG, że dane stron trzecich wykorzystane do zastosowania wykluczeń są niewystarczające lub niedokładne.

The Investment Manager may consider that the data is insufficient or inaccurate if, for example, the third-party data provider research is historic, vague, based on out of date sources, or the investment manager has other information to make them doubt the accuracy of the research. If the Investment Manager wishes to challenge the third-party data, then the challenge is presented to a cross-functional ESG Oversight Committee who must sign off on the “override” of the third-party data. If a third party data provider does not provide research on a specific issuer or excluded activity, the Investment Manager may invest if, through its own research, it is satisfied that the issuer is not involved in the excluded activity.

The Fund also applies the Firmwide Exclusions Policy (see “Firmwide Exclusions” in the "JHI Responsible Investment Policy”), which includes controversial weapons.

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 inhouse research may be used to complement the ESG research. This ensures 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 JHI Responsible Investment Policy, which incorporates JHI’s Sustainability Risk Policy, sets out the firmwide approach to ESG Integration Principles, including JHI’s Responsible Investment Principles for long-term investment success, our approaches to Stewardship and Engagement and Baseline Exclusions applied to investee companies.

¹ Wysoka intensywność emisji dwutlenku węgla odnosi się do papierów wartościowych 10% spółek w Europie Zachodniej (w tym w Wielkiej Brytanii) o najwyższym poziomie emisji o kapitalizacji rynkowej poniżej 7 miliardów EUR oraz dolnej granicy na poziomie miliarda EUR.