Janus Henderson Global Sustainable Equity Fund

“Is the world a better place because of this company?” That is an incredibly powerful line to ask about any business. But it’s a line that Hamish Chamberlayne, Lead Portfolio Manager of the Janus Henderson Global Sustainable Equity Fund, asks about every single company he considers investing in.

Standing out

It seems like a new ESG (Environmental, Social & Governance) fund is launched every day. And they each have their own focus on one specific area of the market, from renewable energy to environmental waste. But the Janus Henderson Global Sustainable Equity Fund has been investing in companies that have environmental and/or social benefits for 30 years.

One of the things we like about this fund is how the investment approach isn’t just about avoiding companies perceived to have a negative effect on people, the environment, and animals, but that Hamish is also looking to invest in companies that proactively have a positive impact towards the development of a sustainable global economy.

And he’s demonstrated the ability to deliver strong performance returns for investors, while adhering to this approach. Note that past performance is not a reliable guide to future performance.

Figure 1: Performance of the Janus Henderson Global Sustainable Equity Fund

Source: Smart Investor website (FE), I ACC share class

Cardboard boxes and Donkey Kong

The fund typically invests in about 50-70 companies, from what seems like the obvious renewable energy businesses to some more obscure companies where the ESG link is not quite so obvious.

DS Smith is a good example of the type of company that makes the cut. The company is Europe’s leading manufacturer and recycler of corrugated packaging products. Its recycling and packaging operations are closely integrated to the extent that it takes as little as 14 days for a cardboard box to be made, used, collected, recycled, pulped, pressed, and made back into a cardboard box again.

The company aims to create a completely circular supply chain, thereby achieving zero waste. This commitment to sustainable packaging solutions is enabling customers to reduce the environmental impact of their products.

Japanese electronics company Nintendo is probably not quite an obvious choice, but it has a place in the fund. The video gaming industry has provided solace for many individuals at a time when physical social contact is limited. However, negative connotations surrounding gaming have long been a cause for concern. For the fund manager, Nintendo is a prime example of how gaming companies can ‘do it right’, by creating unique, family-friendly games for all ages.

Tackling obesity, enhancing mental wellbeing, and making learning fun are all ways in which the fund manager believes Nintendo’s products can contribute positively to society. A key objective of Nintendo’s products is to create fun for everyone, and their range of fitness games, karaoke, and Pokémon GO (the one where you run around town looking to capture cute and colourful virtual ‘creatures’) are examples of such entertainment, which can be enjoyed by all ages and genders.

A better place?

Is the world a better place because of DS Smith and Nintendo? They’re not going to solve global warming or eliminate single-use plastic, but they are doing their bit for a better world. So yes, the fund manager believes the world is a better place because of DS Smith and Nintendo.

And the fund is full of companies like DS Smith and Nintendo. If you’re thinking of investing in a global equity fund with the aim of delivering capital growth, and feel a focus on those companies that have a positive impact towards the development of a sustainable global economy is important, this fund could be worth considering.

In addition to the Janus Henderson Global Sustainable Equity Fund, there are also additional sustainable funds on the Barclays Funds List, such as the BlackRock Sustainable Energy Fund and the Jupiter Ecology Fund. Find out more information on these funds.

Correct at the time of publishing.

To diversify your investment, you may like to consider our own Barclays Ready-made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.

Past performance of the fund and its manager are not a reliable indicator of their future performance.

We don’t offer personal investment advice so if you’re unsure you should seek that independently.

Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.

These are our current opinions but the future, as ever, is uncertain and outcomes may differ.

Read the Assessment of Value report [PDF, 3.2MB] for funds run by Barclays.