Status under the EU Sustainable Finance Disclosure Regulation (SFDR) – Global Life Sciences Fund

Janus Henderson – Global Life Sciences Fund

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.

A. Summary

This financial product promotes environmental or social characteristics and invests in companies with good governance practice but does not have as its objective sustainable investment

The Fund promotes support for the United Nations Global Compact principles (which cover matters including human rights, labour, corruption, and environmental pollution), and avoids issuers with the worst ESG risk ratings.

The Fund does not use a reference benchmark to attain its environmental or social characteristics.

The binding elements of the investment strategy described below are implemented as exclusionary screens on covered securities, which are coded into the compliance module of the Sub-Investment Adviser’s order management system utilising third-party data provider(s) on an ongoing basis.

The good governance practices of investee companies are assessed prior to making an investment and periodically thereafter in accordance with the Sustainability Risk Policy (“Policy”).

The Sub-Investment Adviser applies screens based on third party data and/or internal research to exclude companies 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).

The Sub-Investment Adviser applies screens to ensure at least 80% of the portfolio is invested in companies with an ESG risk rating of BB or higher (by MSCI – https://www.msci.com/, or equivalent).

The Fund also applies the Firmwide Exclusions Policy (the “Firmwide Exclusions Policy”), which includes controversial weapons, as detailed under the Prospectus section entitled “Investment Restrictions”.

JHI has chosen MSCI’s ESG Manager as its primary data source for ESG (Environmental, Social and Governance) research.
Other specialist ESG Data vendors or inhouse research may also be used to complement MSCI data. For positions not covered by the external data provider, proprietary research may be used. The appropriateness of the evidence provided is assessed by the ESG Oversight Committee (ESG OC) .

Data coverage is directly driven by the coverage of the underlying ESG Data Provider.

The JHI Sustainability Risk Policy sets out the firmwide ESG Integration Principles, Sustainable Investment Principles and Baseline Exclusions applied to investee companies.