Matt Gaden
Janus Henderson Investors has announced the Australian launch of the Janus Henderson Global Sustainable Equity Active ETF (Managed Fund) (ticker ‘FUTR’). The new active ETF draws on the firm’s 30-year heritage of sustainable investing and builds on its commitment to providing differentiated ETF solutions.
FUTR will seek to invest in global companies that are positioned to confront the challenges posed by megatrends (such as climate change, resource constraints, population growth and ageing populations), and those seeking to transform the industries in which they operate to support a sustainable international economy.
The launch of FUTR follows the recent publication of an IPCC report warning the urgency of collaborative action against climate change and the Responsible Investment Association of Australasia’s (RIAA) report[1] highlighting that the market for Australian responsible investment is growing at fifteen times the rate of the wider investment market. FUTR provides Australian retail investors the opportunity to invest in companies whose activities benefit from the transition to greater global sustainability.
Matt Gaden, Head of Australia at Janus Henderson said: “The migration towards a more sustainable global economy is creating a myriad of investment opportunities. While our clients still demand investment solutions that will outperform over the longer term, they also want to know their investments are making a difference to make the world a better place – that you can generate strong returns and do good at the same time. Those words and beliefs are now being translated into action and the demand we’re seeing for quality, sustainable investment strategies shows no sign of abating.”
The ETF will also be available as a managed fund and will be managed by London-based Head of Global Sustainable Equities, Hamish Chamberlayne and US-based Portfolio Manager, Aaron Scully. The investment team will be supported by a dedicated analyst team (including a sustainability analyst), as well as by a new and growing global team of ESG specialists, led by Janus Henderson’s Head of ESG Investments, Paul LaCoursiere.
The market-leading Global Sustainable Equity strategy is Janus Henderson Investors’ largest dedicated ESG offering. The Fund is currently AUD$4.7 billion in size and assets under management have tripled over the last two years due to global market demand for the solution. The Fund is ranked in the top Morningstar decile over both three and five years. The Janus Henderson Global Sustainable Equity Fund also recently received a “Recommended” rating from Zenith Investment Partners. In its research report, Zenith noted the Fund is ‘an attractive offering for investors with a sustainability/ethical focus’.
New ETF helps Australian investors stay on the right side of disruption
The Global Sustainable Equity ETF (Managed Fund) aims to provide capital growth over the long term by investing in companies whose products and services are considered as contributing to positive environmental or social change and thereby have an impact on the development of a sustainable global economy. The ETF’s high-conviction portfolio of 50-70 companies carries a carbon footprint that is 85% less than that of the MSCI World Index.
Janus Henderson Investors strongly believe investing through a lens of sustainability combined with fundamental research, aids in the construction of a high conviction portfolio with an attractive risk profile. To that end, FUTR invests in companies that make a positive impact on the development of a sustainable global economy, avoiding companies invested in fossil fuels and those that stand to be disrupted by the transition to a low-carbon economy. This allows FUTR to provide investors with access to equities with strong ESG characteristics and serious consideration of Triple Bottom Line[2].
Hamish Chamberlayne, Head of Global Sustainable Equities at Janus Henderson said: “2021 marks the 30-year anniversary of the Global Sustainable Equity strategy. Environmental and societal megatrends are putting the global economy under enormous pressure and have very real investment implications. Intentionality and transparency are core attributes of sustainable investing and over many years we have developed a clear framework for integrating sustainable development issues into our investment decision making. Our active approach has sustainability embedded the whole way through our investment process from universe definition to portfolio construction and active ownership. We consider a strong engagement ethos as being essential to any truly sustainable investment strategy.
We see a close alignment between sustainable development, innovation and growth. We start with the question “Is the world a better place because of this company?” because we believe companies with goods and services aligned with the development of a sustainable economy are more likely to grow and generate strong investment returns. And because ESG risk factors are both complex and varied, our culture of deep fundamental research ensures effective integration into investment analysis.”
As part of its ongoing commitment to responsible investing Janus Henderson Investors will be an active participant at the 2021 United Nations Climate Change Conference (COP26) scheduled to be held in Glasgow in November. COP26 brings heads of state, climate change experts and campaigners together to agree on a plan to address climate change. Janus Henderson will host a panel discussion on 8th November on the topic: “Does decarbonisation have to be bad for emerging markets?”.