Matt Gaden

Janus Henderson Investors has announced the Australian launch of the Janus Henderson Net Zero Transition Resources Active ETF (Managed Fund) (ASX ticker: ‘JZRO’). The fund is Janus Henderson’s third Active ETF in Australia and offers investors a global equity portfolio of resources companies positioned for the transition to a low-carbon future.

JZRO seeks to provide exposure to a diversified portfolio of global natural resources companies operating in the materials, energy, agricultural, industrial, and utility sectors. It typically holds between 25 to 50 companies diversified by sector, market capitalisation and country.

The fund’s launch comes as investors navigate the market impacts of the energy transition, while also attempting to prepare their portfolios to take advantage of the significant investment opportunities to follow global decarbonisation efforts. According to recent Morningstar research1, sustainable funds now hold $44.3 billion in Australian assets, and have more than doubled since 2019.

Matt Gaden, Head of Australia at Janus Henderson said: “At Janus Henderson Investors Australia, we are committed to expanding and extending our product offering to meet the growing ESG investing demands of our clients, while also offering Janus Henderson’s high-quality global products to Australian investors.

“We firmly believe our active management approach allows us to most effectively implement ESG considerations into our products. Following the successful launches of our Global Sustainable Equity Active ETF (‘FUTR’) in September 2021, and our Tactical Income Active ETF (‘TACT’) in July 2020, we continue to provide Australians with actively managed sustainable investment options, helping them to build their portfolios in a cost-efficient and flexible way, while also contributing to the shift to Net Zero.”

Also available as an unlisted managed fund, JZRO will be listed on the ASX, and is jointly managed by Janus Henderson Head of Global Natural Resources Daniel Sullivan, Sydney-based Portfolio Managers Tim Gerrard and Darko Kuzmanovic, and London-based Portfolio Manager Tal Lomnitzer, CFA.

The highly experienced investment team have cumulative industry experience of over 120 years, blending natural resource investment specialisation and stock market expertise with with geological, technical, financial, ESG and industry experience. The team is also supported by a growing global team of 16 dedicated ESG investment specialists.

Actively seeking opportunities across global decarbonisation themes

The Janus Henderson Net Zero Transition Resources strategy invests in companies across five key investment themes, including energy transition, sustainable mobility, sustainable industry, sustainable agribusiness, and carbon reduction.

The strategy applies both negative and positive filters or screens based on avoidance criteria and sustainability themes and excludes investment in companies that derive more than 10% of their revenue from the production of fossil fuels. The strategy also selects companies for their contributions to the transition to Net Zero and potential to deliver superior long-term returns.

JZRO holdings currently include plant-based meat substitute producer Beyond Meat (NASDAQ: BYND), and global aluminium supplier Alcoa Corporation (NYSE: AA).

Daniel Sullivan, Head of Global Natural Resources at Janus Henderson said: “Natural resources remain the essential building blocks of daily life and continue to underpin our economic and social progress. We believe sustainable natural resource companies have a key role to play in supporting the transition to a low-carbon economy through the deployment of renewable energy technologies like solar and electric vehicles on a large scale. Such technologies require significantly greater amounts of minerals such as copper, aluminium, nickel, lithium, and cobalt, offering an opportunity for investors.

“As can be expected for investors operating across the mining, energy and agricultural sectors, the consideration of material ESG factors is critical. Through our active management approach, Janus Henderson can implement the kind of nuanced analysis and decision making required to successfully navigate the ESG risks in opportunities prevalent in this asset class.”

Tim Gerrard, Portfolio Manager at Janus Henderson said: “We are witnessing the significant positive economic impacts of an energy transition amid a global decarbonisation effort. More than 120 countries have pledged to reach Net Zero greenhouse gas emissions by around 2050 and are supported by the commitments of more than 100 regional governments, 800 cities and 1500 companies, and this is changing almost daily.

“With some nations choosing to bring their established Net Zero deadlines forward, we believe it is a critical time for investors to consider not only how they will contribute to decarbonisation, but to position their portfolios to capitalise on the breadth of investment opportunities created by the shift to Net Zero, taking advantage of a once-in-a-lifetime investment cycle.”

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Lonsec Fiscal (Lonsec), a leading provider of financial services research and investment execution,  announced the expansion of its existing Sydney-based institutional broking division with the appointment of three senior resources specialists.

The new appointments, Rod Clarkson, Tim Gerrard and Colin McLelland, were formerly the nucleus of the Investec Equities team based in Sydney.

Lonsec Fiscal’s group Managing Director, Jason Clarke, commented, “We are thrilled that Rod, Tim and Colin have chosen to join Lonsec where we have been diligently expanding our capacity and enhancing the quality of outcomes for clients and customers across the group. They are a very highly regarded team and the appointment reaffirms our commitment to our institutional clients. We wish them well as they expand the Lonsec offering in resource sector research and in Equity Capital Market capabilities.”

David Wylie, CEO of Lonsec Stockbroking, said the collective knowledge and experience of the new team would allow Lonsec to further build its reputation in research, Equity Capital Markets, dealing and execution services.

“This experienced team makes a fantastic and highly complementary addition to our existing institutional broking division,” Mr Wylie said.

“At a time when many industry participants are reducing their dealings with the mining sector, we believe this represents the perfect opportunity for Lonsec to further enhance our broking capabilities. Lonsec is committed to this highly relevant and extremely important sector of the Australian economy.”

While Lonsec has established institutional relationships, this latest move will allow the business to take a greatly enhanced view into the resources sector. The new team will provide a range of services for institutions and corporate clients:

• Institutional Research on resources companies, ranging from large caps to select small and mid-caps
• Equity Capital Market raisings for mining companies through broad networks of domestic and international clients
• Dealing and execution services

Rod Clarkson is a 35 year veteran within the securities industry, bringing experience from his time as the head of sales desk for James Capel, Prudential Bache and BNP Paribas in London. Most recently Mr Clarkson was Managing Director of Investec Securities where he was responsible for specialist resource broking.

Former Investec director Tim Gerrard has been in the equities market since 1984 researching the Australian resources market including gold, metals and diversified sectors. He has a Bachelor of Mineral Technology Degree (Otago) and BCom (Otago) and prior to joining the broking industry worked for BP Oil Exploration and Hamersley Iron.

Colin McLelland brings experience as a senior consultant for a top tier operational consulting firm as well as over 4 years working as an equities analyst at Investec. He has been active in the equity markets since 2006 with broad resource coverage including coal, iron ore, copper, gold and specialty metals.

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