Janus Henderson Net Zero Transition Resources Fund
Responsible Investing Approach
The Net Zero Transition Resources strategy invests in companies enabling a transition to a low-carbon global economy, which in turn contributes to the transition to net zero. These companies may, but are not required to have a Net Zero Target. Responsible natural resource companies have a key role to play in supporting the transition to a low-carbon economy. An example is the development of renewable energy systems (e.g., solar, wind, battery storage and electric vehicles) on a large scale, which will require significantly larger amounts of minerals such as copper, aluminium, nickel, lithium, and cobalt. Companies best prepared for the future are more likely to deliver returns.
The Manager takes labour standards, and environmental, social and ethical considerations into account when selecting, retaining or realising investments. To identify the universe of investible securities for the Fund, the portfolio managers first apply broad-based negative screens with varying revenue thresholds to eliminate industries, activities, or assets considered by the portfolio managers to have a negative impact on society or the environment. The Manager has no predetermined view on the specific labour standards and specific ethical considerations which it will apply or a fixed methodology or weighting for taking these standards and considerations into account.
The Janus Henderson Responsible Investment and Governance Team supports the investment teams on stewardship issues such as company engagement and proxy voting, as well as ESG research.
Documents
Exclusions
The Fund does not invest in companies that derive more than 5% of their revenues from the sale of tobacco products, production of alcohol, production of non-controversial weapons, activities related to gambling, manufacture and sale of chemicals of concern, sale and manufacture of animal fur products, publication, printing or distribution of newspapers, magazines, films or videos classed as pornographic material. The Manager will generally take into account labour standards and ethical considerations and does not invest in companies that derive more than 5% of their revenues from activities in violation of the United Nations Global Compact Principles.
Furthermore, the Fund does not invest in companies that derive more than 10% of their revenues from the use of animal testing, fossil fuel extraction and refining, or companies that derive more than 30% of their revenues from thermal coal power generation without a credible plan for transition to net zero or renewable energy. The Fund may have limited indirect exposure to excluded investments from time to time.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | The Fund does not invest in companies that derive any revenue from the production of tobacco products. |
| Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the sale of tobacco products. |
|
 Alcohol
|
Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the production of alcohol. |
 Weapons
|
Full | The Fund does not invest in companies that derive any revenue from the production of controversial weapons, which includes land mines, cluster munitions, biological/chemical weapons and nuclear weapons. |
| Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the production of non-controversial weapons. |
|
 Fossil fuel exploration, mining and production
|
Partial | The Fund does not invest in companies that derive more than 10% of their revenues from fossil fuel extraction and refining, including extraction of fossil fuels from oil sands, thermal coal extraction and Arctic drilling and exploration, or companies that derive more than 30% of their revenues from thermal coal power generation without a credible plan for transition to net zero or renewable energy. |
 Human rights abuses
|
Partial | The Manager will generally take into account labour standards and ethical considerations and does not invest in companies that derive more than 5% of their revenues from activities in violation of the United Nations Global Compact Principles. |
 Labour rights violations
|
Partial | The Manager will generally take into account labour standards and ethical considerations and does not invest in companies that derive more than 5% of their revenues from activities in violation of the United Nations Global Compact Principles. |
 Environmental damage
|
Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the manufacture and sale of chemicals of concern, including chemicals or products containing chemicals subject to bans or severe restrictions in major markets around the world. |
 Animal testing for non-medical purposes
|
Partial | The Fund does not invest in companies that derive more than 10% of their revenues from the use of animal testing (for cosmetic purposes or in cases where required by law or regulation). |
 Unethical treatment of livestock
|
Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the sale and manufacture of animal fur products. |
 Gambling
|
Partial | The Fund does not invest in companies that derive more than 5% of their revenues from activities related to gambling. |
 Adult entertainment/pornography
|
Partial | The Fund does not invest in companies that derive more than 5% of their revenues from the publication, printing or distribution of newspapers, magazines, films or videos classed as pornographic material. |
Inclusions
The Net Zero Transition Resources strategy invests in companies enabling a transition to a low-carbon global economy, which in turn contributes to the transition to net zero. These companies may, but are not required to have a Net Zero Target. The theme of decarbonisation is considered across five sub-theme groups, such as Energy Transition, Sustainable Mobility, Sustainable Industry, Sustainable Agribusiness, and Carbon Reduction. The Fund applies Positive Screening which involves determining whether a company contributes to its sustainability themes. This assessment is based on the way the company is run and the ESG impact of the products and/or services the company offers.
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UN Sustainable Development Goals
Conventions & Treaties
Janus Henderson is involved in a wide range of ESG-related initiatives as a member, supporter or in an advisory capacity. It is a Forum member of TNFD, a signatory of Climate Action 100+, a founder member of the Institutional Investors Group on Climate Change (IIGCC), and its Global Sustainable Equity Team was a founding member of the Net Zero Carbon* initiative in 2020. Legacy Henderson was a founding signatory of the UN Principles for Responsible Investment, joining in April 2006 when the principles were launched. Legacy Janus joined in 2014.
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| UN Global Compact | Yes | Excludes companies in violation of the UNGC principles as part of its investment process and supports organisations that elect to become official signatories. |
| Principles for Responsible Investment | Yes | Legacy Henderson was a founding signatory, joining in April 2006 when the principles were launched. Legacy Janus joined in 2014. |
ESG Score
| ESG Score |
|
||
|---|---|---|---|
| Does the portfolio have an ESG score? | Not disclosed | ||
| If so, who is responsible for calculating the score? | Not disclosed | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
Impact Investing Score
| Impact Investing Score |
|
||
|---|---|---|---|
| Does the portfolio have an Impact Investment score? | Not disclosed | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
| Does the fund publish its holdings publicly? | No | ||
Policies, Certification & Marketing
| Policies, Certification & Marketing |
|
|||
|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Is the fund RIAA certified? | No | |||
| ESG Investment Policy | View ESG Investment Policy document | |||
| Responsibility Report 2023 | View Responsibility Report 2023 document | |||
Janus Henderson Net Zero Transition Resources Fund
Strategy Summary
The Fund is a long only, actively managed, global transition resources equity fund. The Fund seeks to provide exposure to a diversified portfolio of global natural resource companies operating in the materials, energy, utility, agricultural, industrial and consumer staple sectors whose products, services and activities are contributing to, or benefiting from, the goal of achieving net zero carbon emissions. The Fund typically holds between 25-50 companies diversified by sector, market capitalisation and country.Key Terms
| Status: | Open | Inception Date: | Mar 2022 |
| Strategy: | Equity Long | Style: | N/A |
| Geography: | Global | Domicile: | Australia |
| Investors: | Retail | Min. Investment: | AU$25000 |
| Mgmt. Fee: | 0.85% | Perf. Fee: | 0% |
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