Janus Henderson Global Natural Resources Fund
About this Fund
|FUND MANAGER||Janus Henderson|
|ASSET CLASS||GLOBAL EQUITIES|
|INVESTMENT STYLE||The Fund seeks to provide exposure to a carefully selected portfolio of global natural resource companies operating in the mining, energy and agricultural sectors.|
|INVESTMENT PROFILE||To achieve a total return after fees that exceeds the total return of the Benchmark over rolling five-year periods.|
|BENCHMARK||S&P Global Natural Resources Index (net dividends reinvested) in AUD|
|FUND SIZE||S&P Global Natural Resources Index (net dividends reinvested) in AUD|
|NO. OF HOLDINGS||50-70|
Benefits of investing in the Janus Henderson Global Natural Resources Fund
Investing in the Fund offers a range of benefits, including:
The Fund is a long only, actively managed, global natural resource equity fund. The Fund seeks to provide exposure to a carefully selected portfolio of global natural resource companies operating in the mining, energy and agriculture sectors. The Fund typically holds between 50-70 companies diversified by commodity, size, maturity and investment strategy.
Investment strategy and philosophy
The Manager's approach is to manage a high-conviction portfolio of quality natural resource stocks sensibly diversified by commodity, size, maturity and investment strategy together with a number of appropriately sized, risk-adjusted holdings in smaller, high growth companies.
The Fund is managed using a stock selection process primarily based on bottom-up fundamental company analysis utilising extensive specialist natural resources stock market expertise combined with geological, mining, energy, exploration and agricultural industry experience. This approach incorporates an understanding of project and resource company life cycles and an internal research effort that focuses on important valuation events such as the discovery, commissioning and expansion phases of good quality natural resource projects.
Stock selection includes screening for quality, valuation and growth and incorporates stress testing, identification of investment catalysts and trigger points and a final check to ensure that there is a high level of conviction and insight about the key reason(s) for including, maintaining or disposing of a stock in the Fund.
Top-down projections of future economic conditions are also used during portfolio construction to monitor and adjust exposure between key variables including commodities, currencies, geographic locations, company maturity, liquidity and size. This process aims to provide a risk framework incorporating concentration, diversification and liquidity guidelines, together with macro overlays, yet importantly ensuring that high conviction investment ideas can have a meaningful impact on overall portfolio returns.
This combined approach seeks to provide adequate portfolio liquidity and quality, appropriately sized stock positions and a diversified portfolio. Macroeconomic, commodity and political risk overlays are also used in the portfolio construction process.
The Fund uses the S&P Global Natural Resources Accumulation Index in AUD as its benchmark. Although the Manager is aware of the benchmark index weightings by individual major company, country, sector and sub-sector, the Manager focuses on investing in quality companies rather than selecting companies based solely on relative index weightings.
Furthermore, the Manager does not manage the natural resource portfolio to target a pre-determined benchmark tracking error or absolute volatility. The portfolio volatility and tracking error is the end result of the stock picking and portfolio process, not the starting point.
How we invest your money
Asset: Indicative asset allocation range (as % of NAV)
Under normal circumstances, the Fund will invest in equities (and equity like securities) of global natural resource companies operating in the mining, energy and agriculture sectors that are listed or expected to be listed (within 12 months) on regulated markets worldwide. The Fund may also invest in any other type of security that is consistent with its objective, including but not restricted to, Exchange Traded Funds, unit trusts and exchange traded derivatives.
The Fund may hold up to a maximum of 20% of its NAV in cash, however, the Fund will typically be close to fully invested as possible.
The value of the Fund's exchange-traded derivatives exposure will not exceed 10% of the net asset value of the Fund (unless there are, for example, unforeseen market movements or large redemption requests, and the exposure is for no more than three consecutive days).