Janus Henderson Investors has launched an exchange-traded fund (ETF) on the back of the increased interest in companies that hold a leading position in the transition to a low-carbon future.
The Janus Henderson Net Zero Transition Resources Active ETF will offer investors a global equity portfolio of 25 to 50 companies – diversified by sector, market capitalisation and country – that operate in the materials, energy, agricultural, industrial and utility sectors.
The fund strategy will focus on the five key investment themes of energy transition, sustainable mobility, sustainable industry, sustainable agribusiness and carbon reduction, and will apply negative and positive filters and exclude investing in companies that acquire more than 10 per cent of their revenue from fossil fuel production.
Janus Henderson head of Australia Matt Gaden said the fund and its strategy aimed to meet the growing demand for environmental, social and governance (ESG) investing from clients while also offering the firm’s global products to Australian investors.
“We firmly believe our active management approach allows us to most effectively implement ESG considerations into our products,” Gaden said.
“Following the successful launches of our Global Sustainable Equity Active ETF in September 2021 and our Tactical Income Active ETF 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.”
Janus Henderson portfolio manager Tim Gerrard said the fund would benefit from this shift and investors would be at the forefront of new investment prospects.
“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,” Gerrard said.
The new ETF is Janus Henderson’s third active ETF in Australia and will be listed on the Australian Securities Exchange as JZRO, but is also available as an unlisted managed fund.
