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Janus Henderson UK Responsible Income Class I - Income (GBP)

Sell:158.20p Buy:158.20p Change: 1.50p (0.96%)
Prices as at 24 December 2024
Sell:158.20p
Buy:158.20p
Change: 1.50p (0.96%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 24 December 2024
Sell:158.20p
Buy:158.20p
Change: 1.50p (0.96%)
Prices as at 24 December 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Andrew Jones has managed this fund since January 2012, and overall has more than two decades of experience managing UK equity income funds.

He's is supported by the wider Janus Henderson Global Equity Income team, which is a treasure trove of experience. Three members of the team - Job Curtis, James Henderson and Alex Crooke - have more than three decades of investment experience. Janus Henderson's collaborative and friendly culture means Jones can make the most of the experience around him.

He also has access to a bank of analysts, many of whom cover UK companies, and the Global Equity SRI team which provides challenge on Environmental, Social and Governance (ESG) issues. Overall, we think Jones has the resources required to do his job well.

The fund is different to most other funds in the IA UK Equity Income sector as it avoids companies with significant exposure to areas considered to have a significant negative impact on people, the environment and animals. Some of these areas, such as tobacco and oil & gas companies, feature heavily in traditional equity income funds because of their relatively high dividends. This fund could therefore offer some diversification to a traditional equity income portfolio, or be a good addition to a responsible portfolio aiming to provide income.

Overall, we admire the manager's experience, and that of the wider Global Equity Income team, and believe he can deliver good long-term results for investors.

Our view on the sector

Funds in the Responsible Investment sector take a variety of approaches. Some invest in companies that are well-managed and take their commitments to the environment and society seriously, others simply look to avoid the worst offenders. Some even try to invest only in companies making a positive impact in the world, like green energy producers, or companies that clean and reuse water.

Responsible investing offers the possibility of making money in a way that's in line with your views and beliefs. And it's becoming more and more popular. But 'responsible' means different things to different people. An industry that seems abhorrent to one person might seem like a necessary evil to others. That's why you'll need to clarify each fund's approach and make sure it's consistent with your views before you invest.

Performance Analysis

The fund's performed well over the long term, comfortably beating its peers in the IA UK Equity Income sector. Our analysis suggests Jones' ability to select companies with outstanding prospects, regardless of their size or the sector they're in, boosted returns, although past performance is no guide to the future.

Like all funds, this one has had weaker periods too. After the Brexit referendum in 2016, for instance, the fund underperformed the UK market and other UK equity income funds. A focus on UK-centric firms and less exposure to companies that earn a significant proportion of their money overseas held back returns.

The fund's exclusions mean we expect it to perform differently to the broader UK stock market, and its peers in the IA UK Equity Income sector. Oil & gas, for instance, makes up a relatively large part of the UK stock market, and has tended to pay high dividends, so the sector features heavily in many equity income funds. This fund's lack of exposure to oil & gas companies means it could underperform the UK market, and other equity income funds, if oil & gas firms perform well.

Investment Philosophy

Jones invests in companies that generate plenty of cash flow, and that are attractively valued, and aims to hold them for several years. He believes this is the best way to deliver a good level of income alongside capital growth over the long term.

Process and Portfolio Construction

The investment process starts with a screen which excludes companies with significant involvement in three areas:

Impact on people: alcohol, armaments, gambling, pornography and tobacco

Impact on the environment: fossil fuel extraction & refining, chemicals of concern, contentious industries, nuclear power and fossil fuel power generation (although companies generating power from natural gas may be allowed if the company's strategy includes a clear plan to transition to renewable energy power generation).

Impact on animals: animal testing (non-medical), fur and genetic engineering

All investments must also be compliant with the UN Global Compact (a United Nations pact on human rights, labour, the environment and anti-corruption).

From the remaining universe, Jones looks for companies with proven and understandable business models, high-quality management teams and strong positions in their industries. He thinks about how the company defends its position through competitive advantages like brands and intellectual property, and whether those advantages can endure over time. He also likes companies in a strong financial position with plenty of cash flow, allowing them to reinvest for future growth, while at the same time rewarding shareholders with rising dividends.

Finally, he considers the company's valuation, applying a range of valuation techniques that are relevant to the company and the industry it operates in.

The manager also integrates ESG and considers whether companies are doing the right thing. The Global Equity SRI team monitors the fund and provides robust challenge on any ESG issues that crop up over time. Where ESG risks are identified, Jones and his team often engage with the company to help drive improvement.

Jones uses his flexibility to invest up to 20% of the fund overseas to access areas that aren't available in the UK, or to add diversification during times of uncertainty, such as the 2016 Brexit referendum and the onset of the Covid-19 crisis early in 2020.

The focus is on large and medium-sized companies, although the manager does have the flexibility to invest in higher-risk smaller companies too.

Please note the fund takes charges from capital, which could boost the income, but reduces the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

24/12/19 to 24/12/20 24/12/20 to 24/12/21 24/12/21 to 24/12/22 24/12/22 to 24/12/23 24/12/23 to 24/12/24
Annual return -8.26% 14.49% -4.92% 13.44% 2.77%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Andrew Jones
Manager start date: 1 January 2012
Manager located in: London

Andrew Jones is a UK equity fund manager with 14 years' investment experience. Andrew joined Henderson in 2005 from Invesco, continuing a six year working partnership with Graham Kitchen that began in 1998. Following his promotion to fund manager at Invesco, Andrew was responsible for co-managing both retail and institutional UK Equity funds with Graham. He continued running the funds following Graham's departure in 2004.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account