Dispelling the myths of sustainable investment

07/02/2018

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In this video presentation, Hamish Chamberlayne, Portfolio Manager within Janus Henderson's Global Sustainable and Responsible Investment Team, dispels the major myths about sustainable investment. He explains how environmental and social megatrends will accelerate the transition to a low carbon economy and discusses some of the investment areas that stand to be disrupted.

Key points:

  • Population growth, ageing populations, resource constraints, and climate change are the key megatrends that will pressure the sustainability of the global economy.
  • Market forces will drive the transition to low carbon, as the price of renewable energy, such as wind and solar, continues to fall.
  • Significant disruption will happen across many sectors: electrification is already disrupting transport markets and the battery mega-factories are coming.
  • The team believes that carbon is the ‘big short’: significant asset divesting is happening in the market.
  • The future sustainability of the global economy requires change across multiple sectors: the team says sustainability makes good business and investment sense.

 

 

For professional investors. These are the manager's views at the time of recording and should not be construed as investment advice. The opinions expressed do not necessarily reflect the views of others at Janus Henderson. References made to sectors and stocks do not constitute or form part of any offer or solicitation to issue, sell, subscribe, or purchase them.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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Please read the following important information regarding funds related to this article.

Janus Henderson Global Sustainable Equity Fund

Specific risks

  • This fund is designed to be used only as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this fund.
  • The Fund could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Fund.
  • The Fund may use derivatives with the aim of reducing risk or managing the portfolio more efficiently. However this introduces other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • If the Fund holds assets in currencies other than the base currency of the Fund or you invest in a share class of a different currency to the Fund (unless 'hedged'), the value of your investment may be impacted by changes in exchange rates.
  • If the Fund or a specific share class of the Fund seeks to reduce risks (such as exchange rate movements), the measures designed to do so may be ineffective, unavailable or detrimental.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • The Fund follows a sustainable investment approach, which may cause it to be overweight and/or underweight in certain sectors and thus perform differently than funds that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.

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