The Fund will provide exposure to an actively manageddiversified credit strategy that seeks to deliver total returns includingincome and capital growth by investing primarily in fixed and floating ratedebt securities which the Manager considers are issued by entities with robustsustainable practices and/or investments with the potential to enhanceoutcomes for society’s wellbeing and/or protection of the planet. This is doneby allocating at least 80% of the assets of the Fund to 'Sustainable' and/or'Impact' investments. The Manager considers 'Sustainable' and 'Impact'investments will contribute positively to ‘People’ and/or ‘Planet’ themesspecified in the Investment objective, whilst generating market commensuratereturns.

The Manager will adopt and apply its own criteria for'Sustainable' and 'Impact' investments (and for any terminology used todescribe them), 'People' and 'Planet' themes, and entities with 'robustsustainable practices,' and 'the potential to enhance outcomes for society'swellbeing and/or protection of the planet,' which may differ from the view oropinion of an individual investor.

The Fund will seek to avoid investments from issuers withproducts, services, processes or activities that the Manager considers causesignificant social and/or environmental harm and do not constitute'Sustainable' or 'Impact' investments. These investments are excluded via bothabsolute negative screens and revenue thresholds. 

Up to 20% of the Fund’s asset value can be invested inliquid assets such as government bonds, semi-government bonds, supranationals,and cash equivalents as well as derivatives for liquidity and risk managementpurposes. These investments are not subject to negative screens due to the lackof data availability.

Investments may be made directly or indirectly throughinvestments in other managed funds, including both Australian and offshorelisted and unlisted funds.Where the Fund invests in non-Australian dollar denominatedsecurities, the associated foreign currency exposure will be as close to fullyhedged as is practicable using appropriate derivative instruments.

To achieve the investment objective, the Fund utilises theJanus Henderson Australian Fixed Interest team’s proprietary ‘Holistic’framework. This framework combines qualitative ESG assessments from ourexperienced credit analysts, ESG metrics of the issuers (e.g. greenhouse gasemissions, net zero targets, biodiversity policy, water policy, wastereduction, gender equality measures, etc) sourced via third party providersand/or directly from the issuers (where data is available) as well as thirdparty opinions/ratings from research houses. Once the data has been gathered,this framework assesses each entity’s sustainable practices by observing thecredentials of the industry in which it operates, and assesses an issuer’score products and services, processes (how it is offered) and ESG controversies(i.e. major events in which the issuer is involved, which can negatively affectits ESG metrics). The available inputs are used to identify companies theManager considers have high or poorly managed ESG risks. Where the Managerrelies on third party data and this data is incorrect, there may be a risk thatthe accuracy or effectiveness of certain ESG metrics used in the 'Holistic'framework may be affected.

To complement this, we may also utilise our activestewardship and engagement activities, through which we seek to betterunderstand, companies’ current ESG practices, corporate governance structureand the quality and behaviour of corporate leadership and executive management,and pathway/objectives for future sustainable practices among other things. Weseek to assess the ability of the company’s leadership team to implementeffective environmental and social risk reduction and mitigation strategies inits operations. Please see 'Stewardship activities' below for more information.

The Fund seeks to achieve a total return before fees that exceeds the total return of the Benchmark by 0.75% p.a. over rolling 3-year periods.