Janus Henderson Institutional Global Responsible Managed (OEIC/Unit Trust)
SRI / Ethical Overview
The Fund aims to provide a sustainable and ethical fund to investors that adheres to strict investment criteria for stewardship and ethical, sustainable and responsible investment.
The Fund’s investment objective is to achieve above average long-term capital growth by investing in a mix of assets including UK and overseas equities and fixed interests stocks. Individual companies are chosen for their social and environmental leadership in the area within which they operate.
The Fund is comprised of three investment sub funds – international equities, UK equities and global fixed income.
SRI / themed / ethical assets under management – overview
- Fund Size (GBP): £265.5m Source: Janus Henderson Investors as at 30 April 2018
- Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds: £1,145m Source: Janus Henderson Investors as at 30 April 2018
- Total value of assets covered by any additional ESG or responsible ownership policy: Janus Henderson has a Responsible Investment Policy which sets out our approach to ESG issues, including proxy voting policy, for our Investment Management business, which includes all our equities and fixed income teams. We believe that in order to achieve long-term success, companies need not only to conceive and execute appropriate business strategies, but also to maintain high standards of corporate governance and corporate responsibility. We therefore expect companies to operate according to recognised national and international standards in these areas.
- Total assets under management: £265,110m Source: Janus Henderson Investors as at 31 March 2018
SRI Policies (Primary strategy in bold)
- Environmental policy Find investment funds with environmental policies - ie that consider issues such as pollution, climate change, resource management, environmental impact. This will include options from all of the different SRI Styles, including funds where their core strategy is to focus on other areas such as ethical funds. See fund information for fund specific policy details.
- Health & wellbeing policies Find ethical or sustainable investment fund options that have a policy which supports (ie aims to invest in) companies that are viewed as offering positive lifestyle, health or wellbeing related benefits.
- Limits exposure to carbon intensive industries Find environmental, sustainable investment, ethical fund and other options that aim to significantly reduce or limit exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Funds vary - strategies may involve excluding sectors such as coal, oil & gas, mining or airlines - or may indicate a 'best in sector' approach is taken. See fund literature for details.
- Sustainability policy Find fund options that consider issues relating to the sustainability agenda (e.g. resource management, environmental impact, climate change and/or social issues such as equal opportunities, human rights and adherence to recognised codes). This will include funds from all of the different SRI Styles. See fund information for explanations of the different strategies.
- Ethical policies Find funds with 'traditional' ethical investment policies. These typically focus on avoiding companies that are involved in the armaments industry, tobacco, gambling and/or pornography. Options will include funds where their core strategy or style may be to focus other issues - like sustainability or the environment, not just 'ethical funds'. Strategies vary significantly. Check fund literature for details.
- Social policy Find fund options that consider social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). This will include funds in most of the different SRI Styles as this is considered a core issue. See fund information for detail.
- Governance policy Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices.
- Animal welfare policy Find ethical fund options that have policies that require specific animal welfare standards to be adopted by investee companies in order for them to be considered for inclusion within the fund.
- Nuclear exclusion policy Find ethical funds (and other options) that have a published policy that sets out the fund's position on avoiding or limiting exposure to nuclear power. See fund literature for details of their policy.
- Animal testing exclusion policy Find ethical investment options that avoid companies that are involved in testing their products on animals. Ethical fund strategies vary - some exclude all companies that test on animals, others allow companies that test for medical purposes or where required by law. Read fund details for fund specific information.
- Tobacco production avoided Find fund options that exclude manufacturers of tobacco (or related) products. This typically relates to ethical funds however funds from other SRI Styles commonly avoid this area also. Strategies vary and funds may invest in retailers of such products (e.g. supermarkets or hotels.) See fund information for further information.
- Armaments manufacturers avoided Find ethical fund (and other SRI) options that avoid avoids companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non strategic military products. Read fund literature for specific details.
- Coal, oil &/or gas majors excluded Find sustainable investment and ethical fund options that avoid significant involvement in coal, oil and/or gas producing companies. Funds vary. See individual fund literature to confirm details.
- Climate change / GHG policy Find sustainable investment and ethical fund options that pay significant attention to climate change related issues such as greenhouse gas/carbon emissions. Strategies vary, see fund literature for individual fund information.
- Invests in clean energy/renewables Find ethical, sustainable investment and other environmentally aware fund options that aim to invest in companies in the clean technology and renewable energy sectors. Fund strategies vary. Some funds may have limited exposure to this area, others may have significant exposure. Check fund literature for details.
- Alcohol production excluded This filter helps you to find ethical funds - and other options - that avoid investment in alcohol production. See fund literature for further information.
- Fracking and tar sands excluded Find fund options that avoid companies involved in fracking and tar sands - which are widely regarded as more controversial methods of oil and gas extraction.
- Gambling avoidance policy Find ethical fund options (and other options) that avoid companies with significant involvement in the gambling industry. See fund policy for details.
- Pornography avoidance policy Find ethical fund option - and in some cases other options - that avoid companies that derive significant income from pornography. See fund details for further information.
- Human rights Find funds that consider human rights practices when approving companies for investment. Such funds will require decent standards of human rights to be demonstrated - which typically means adherence to international norms as a minimum standard.
- Child labour exclusion Find funds that have policies in place that ensure they do not invest in companies that employ children.
- Deforestation / palm oil policy Find funds that have policies in place that ensure they do not invest in companies that are significantly involved in deforestation, this typically relates to palm oil plantations.
- Water / sanitation policy Find funds that have policies that focus on the the water industry and/or sanitation.
- Resource efficiency policy or theme Find funds that have a a policy or theme that relates to managing natural resources more efficiently
- Sustainable transport theme or policy Find funds that have stated policies or thematic investment approaches that relate to supporting more sustainable (environmentally aware) transport
- Positive social impact theme Find funds that specifically state that they aim to deliver positive social (ie people related) impacts and/or outcomes
- Responsible supply chain policy or theme Find funds that have policies or a themed that considers the responsible management of supply chain related issues (these may relate to employment, product sourcing, sustainability or other issues)
- Positive environmental impact theme Find funds that specifically set out to help deliver positive environmental impacts, benefits or outcomes
- Plastics policy / reviewing plastics Find funds that are specifically managing or reviewing how they manage issues relating to the over use plastics (particularly single use plastics) as part of their investment processes
- Balances company 'pros and cons'/best in sector Find ethical funds and other options that consider both the 'positive' things companies do and the 'negative' things they do in order to make balanced, often complex decisions about where they might invest. Such funds often invest in the best/most ethical companies across most industries ('best in sector'), rather than excluding entire sectors. The fund manager may combine this with 'responsible engagement' activity to encourage better business practices. See fund literature for specific policy explanations.
- Favours companies with strong social policies Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
- Sustainability themed Find funds where there is a significant emphasis on sustainability issues either as its primary strategy or as a core strategy that compliments other criteria. (This may apply to a number of different SRI Styles). Such funds will consider environmental and social issues when making stock selection decisions. Read fund literature for further information.
- Eurosif transparency Find funds that meet the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
- Norms focus Find funds that use internationally agreed standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact, UN Sustainable Development Goals). Read fund literature for further information.
- Negative selection bias Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
- Over 50% large cap Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
- Favours cleaner, greener companies Find funds that aim to nvest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts. Read fund literature for further information.
- Aims to generate positive impacts Find funds that aim to help deliver positive social or environmental impacts or outcomes through their investment decisions - which typically involves holding companies that are viewed as being necessary or beneficial. Strategies and approaches vary. A small number of funds have recently started to measure outcomes (see 'Measures Impacts' in the Policy filter). This is a new area - so most funds do not do this yet. See fund literature for further information.
- Available via an ISA Find funds that are available via a tax efficient ISA product wrapper
- Clean energy themed Find funds that invest in clean technology / clean energy companies. See fund information for further details.
- Single resource theme Find funds that focus on a single 'resource' or sector, eg water. See fund details for further information.
- Responsible ownership / stewardship policy Find funds that have a policy that sets out what they do with regard to responsible investment ownership - also known as 'stewardship'. This typically relates to issues such as dialogue with companies and shareholder voting.
- ESG integration strategy Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. (These typically relate to improved risk management.)
- Combines norms based exclusions with other SRI criteria Find funds that make significant use of internationally agreed 'norms' (eg United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process ALONGSIDE additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
- Combines ESG strategy with other SRI criteria Find funds that have an ESG strategy (which is typically focuses on avoiding companies that post environmental, social or governance related risks) with additional criteria such as positive and/or negative screens or engagement/stewardship strategies.
- Invests mostly in large cap companies Find funds that have SRI strategies and focus their investment stock selection on larger companies (eg over £1bn)
- Invests in social housing Find funds that have significant investment in social housing or similar assets
- Employ external oversight or advisory committee Find funds that have a external committee that helps steer or advise fund managers on SRI policy or strategy related issues. These people may be paid for their time but are not employees of the fund manager.
- Measures positive impacts Find funds that measure the positive effect of their investment decision making on society and/or the environment. (This may involve eg carbon saved or jobs supported.) Managers aim to quantify the benefits they deliver (relative to other strategies or other benchmarks) to ensure they are delivering positive benefiting. This is a new and evolving area. See fund literature for information
- ESG/SRI engagement Find funds and fund management companies that actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. This may apply to a single fund or a group of funds. Read fund literature for further information.
- Responsible Ownership policy for non SRI funds Find funds run by fund managers that apply Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
- Integrates ESG factors into all/most fund research Find fund management companies that research environmental, social and governance (ESG) issues when deciding whether or not to invest in a company. This typically applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'. This is increasingly often used as a risk management tool.
- Vote all* shares at AGMs/EGMs This fund manager votes or aims to vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' - where fund managers consider - and express their views on - the key business issues effecting the companies they part own. (*Allowance is made for exceptional situations such as when shares are in the process of being sold.)
- In house responsible ownership/voting expertise Find fund / fund management companies where there is in-house expertise that enables the fund manager to make their own decisions on issues such as shareholder voting, setting of in-house guidelines - for example - particularly with regard to environmental, social and governance (ESG) issues.
- Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
- UK Stewardship Code signatory Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave as responsible 'company owners'.
- Publish Responsible Ownership/Stewardship report Find fund management companies that publish information on their approach to responsible investment ownership - also known as 'Stewardship' - following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
- Publish full voting record Find fund management companies that publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
- Review(ing) carbon/fossil fuel exposure for all funds Find funds / fund managers that are reviewing or have reviewed their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the context of climate change related concerns, and may often reference international agreements.
- PRI signatory Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment' initiative.
- UKSIF member The fund management company is a member of UKSIF - the UK Sustainable Investment and Finance association
- Fund EcoMarket sponsor/partner Fund management company is supporting this website which aims to raise the profile of and help explain sustainable, responsible and ethical fund strategies. Sponsor funds are listed ahead of other funds and display their company logos.
- Climate Action 100+ or IIGCC member Involved in collaborative institutional investor initiatives that are encouraging companies to address climate change (ie reduce carbon emissions)
- Encourage board diversity eg gender Fund managers encourage the companies they invest in to have more diverse board structures (eg more women on boards)
- Encourage responsible corporate taxation Fund management company is working with the companies it invests in to encourage more responsible corporate taxation
- Encourage carbon / GHG reduction The fund management company is working with the companies it invests in to encourage reductions of carbon dioxide and other greenhouse gas emissions.
- Employ specialist ESG/SRI/sustainability researchers The fund management company directly employs specialist ESG/SRI/sustainability researchers or analysts
- Use specialist ESG/SRI/sustainability research companies The company makes use of expert external research
- Specialist SRI / positive impact fund management company Find fund management companies that specialise in - or focus entirely on - delivering positive impacts or SRI related fund management options
- Full SRI policy information available on request Information on all selected filter options will be supplied by the fund manager if you ask them to do so
SRI / Ethical Policy
The Fund adheres to ethical criteria, avoiding companies that have products, services or activities with a negative impact on people, the environment or animals. Henderson has partnered with industry leading ESG research company, Vigeo EIRIS, to provide ethical screening of potential investments.
We believe the best investment returns will be generated by companies which provide solutions to environmental and social challenges. These companies should have attractive financial attributes such as persistent revenue growth and durable cash flows. We aim to outperform the market over the long term through creating a differentiated global equity portfolio of the best sustainability ideas.
Our investment approach is explicitly low carbon and by incorporating environmental, social and governance factors into our analysis we seek to construct a portfolio with a favourable risk profile.
The Fund is split broadly 40% global ex-UK, 40% UK equities and 20% global fixed income. The global ex-UK and UK portions of the Fund follow the investment processes of the Janus Henderson Global Sustainable Equity Growth Fund and the Janus Henderson UK Responsible Income Fund respectively.
Although all sub-portfolios adhere to the same investment philosophy, each sub-portfolio has a somewhat differentiated investment process and portfolio construction methodology.
Resources, Affiliations & Corporate Strategies
Janus Henderson has appointed a specialist company, Vigeo EIRIS, to provide the negative screening of potential investments. With over 100 research analysts, Vigeo EIRIS is one of the largest responsible investment research companies globally. Its research team covers over 3,000 companies and provides detailed reports into a company’s activities.
An additional level of oversight is provided by Janus Henderson’s Ethical Oversight Committee. This is an independent committee comprising senior figures from across Janus Henderson, responsible for ensuring the fund’s adherence to its exclusion criteria.
An investee company must pass the Vigeo EIRIS screen or be approved by the Ethical Oversight Committee to be eligible for the Fund.
Please note that the negative screening is primarily focused on the products and services of a business; ESG analysis, with regard to the operations of a business, is performed in conjunction with the fundamental analysis.
Once an investment idea is generated and has passed through the negative screening process, the team carries out fundamental research of the company. The team are able to leverage of the insight and research provide by the Global Research platform in Denver as well as the views from other investment teams within the company. The disciplined bottom up research includes a review of a company’s operations, finances, and valuation, as well as an assessment of the material ESG factors in the investment case. All companies assessed for inclusion must demonstrate clear management of long-term strategic risks and opportunities, including compliance with the UN Global Compact.
The team uses a variety of resources to conduct the ESG analysis. These include research from MSCI, RepRisk, IVIS, CDP, ISS Climate Impact, HOLT, and ISS. The team also works closely with Janus Henderson’s Governance and Responsible Investment (GRI) team. This team provides advice and analysis on a range of ESG issues affecting existing and potential investments for all of Janus Henderson’s investment teams.
The GRI team and the portfolio managers are able to examine data that flags controversies in five areas – Environment, Governance, Human Rights, Labour Rights, and Customers. The GRI team also assists with actively engaging company management on ESG issues and reports on all of Janus Henderson’s voting actions at corporate meetings.
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Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment.
Any investment application will be made solely on the basis of the information contained in the Prospectus (including all relevant covering documents), which will contain investment restrictions. This document is intended as a summary only and potential investors must read the prospectus, and where relevant, the key investor information document before investing. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.
Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which Janus Capital International Limited (reg no. 3594615), Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no. 2678531), AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide investment products and services.
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