The Fund will provide exposure to an actively managed diversifiedcredit strategy that seeks to deliver total returns including income andcapital growth by investing primarily in fixed and floating rate debtsecurities which the Manager considers are issued by entities withrobust sustainable practices and/or investments with the potential toenhance outcomes for society’s wellbeing and/or protection of theplanet. This is done by allocating at least 80% of the assets of theFund to ‘Sustainable’ and/or ‘Impact’ investments. The Managerconsiders ‘Sustainable’ and ‘Impact’ investments will contributepositively to ‘People’ and/or ‘Planet’ themes specified in the Investmentobjective, whilst generating market commensurate returns.

The Manager will adopt and apply its own criteria for ‘Sustainable’ and‘Impact’ investments (and for any terminology used to describe them),‘People’ and ‘Planet’ themes, and entities with ‘robust sustainablepractices,’ and ‘the potential to enhance outcomes for society’swellbeing and/or protection of the planet,’ which may differ from theview or opinion of an individual investor.

The Manager’s assessment of sustainable and impact investments aredocumented in a full sustainability report for each issuer within theportfolio.

The Fund will seek to avoid investments from issuers with products,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 excludedvia both absolute negative screens and revenue thresholds. See the‘Sustainability-related investment screens’ set out in section 2 of theAdditional Information Guide for more details.

Up to 20% of the Funds asset value can be invested in highly liquidassets such as government bonds, semi-government bonds,supranationals and cash equivalents as well as derivatives for liquidityand risk management purposes. These investments are not required tobe ‘Sustainable’ or ‘Impact’ investments, and may not be subject to theFund’s negative screens and revenue thresholds (due to a lack ofavailable data from the third party providers).

Where the Fund invests in non-Australian dollar denominatedsecurities, the associated foreign currency exposure will be as close tofully hedged as is practicable using appropriate derivative instruments.

To achieve the investment objectives, the Fund utilises the JanusHenderson Australian Fixed Interest team’s proprietary ‘Holistic’framework. This framework assesses each entity’s sustainabilitypractices by observing the credentials of the industry in which itoperates. It includes an assessment of an issuer’s core products andservices, processes (how it is offered) and any controversies specificallyas it relates to ‘People’ and/or ‘Planet’ and associated factors asprovided above.

The Fund will typically invest in a diversified portfolio of Australian andglobal investment grade and sub-investment grade securities, whichcan be listed or unlisted.

The Fund is designed to leverage the considerable expertise of theManager and gives them the flexibility to actively allocate the Fund’sassets geographically and across the credit ratings spectrum. TheManager considers the risk and return outcomes of the securities andhow the Fund may benefit from diversification across less correlatedcredit market sectors.

The Manager’s approach is to determine the overall level of credit andduration risk in the Fund by taking a top down approach, whichconsiders trends in credit fundamentals, market dynamics and currentvaluations. The Manager then works to construct and maintain awell-diversified portfolio that aims to offer the best risk-adjusted returnswithin the Fund’s risk framework.

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.