Janus Henderson Global Sustainable Equity (ADR): Q3 2025 Review & Outlook

Janus Henderson’s Global Sustainable Equity (ADR) managed account navigated a mixed Q3 2025 backdrop, with sector rotation and macro volatility shaping relative performance. Equity markets were influenced by persistent inflation debates, shifting central-bank commentary and renewed investor focus on earnings quality. Within that context, sustainable and low-carbon themes remained central to the portfolio’s investment thesis, though stock selection drove dispersion across holdings.

During the quarter, the strategy emphasized companies positioned to benefit from the energy transition, digitization and circular-economy solutions. The team continued to favor firms with clear transition pathways, strong governance, and measurable emissions reductions. Holdings in renewable-energy developers, energy-efficiency technology providers and select software names contributed positively, as market appetite for long-duration, high-growth sustainable businesses regained traction mid-quarter.

Conversely, exposure to some legacy industrials and commodity-linked names weighed on returns amid commodity-price variability and short-term demand softness. The managers highlighted that these positions were chosen for their structural decarbonization initiatives and long-term earnings potential rather than cyclical upside.

Risk management remained a priority. Position sizes were adjusted to reflect evolving macro signals and valuation re-rating across green technology segments. Cash levels were used tactically to capture opportunities arising from periodic volatility, while ongoing engagement with portfolio companies aimed to influence disclosure, net-zero alignment and capital-allocation choices.

From an ESG integration perspective, the fund continued to employ a blend of fundamental research and stewardship. The team reported active dialogues with several holdings on emissions targets, board composition and supply-chain resilience — areas seen as pivotal to sustainable long-term value creation.

Looking ahead to Q4 2025, the managers expressed cautious optimism. They expect continued sector rotation but see durable tailwinds for businesses accelerating decarbonization and efficiency gains. The outlook balances conviction in core sustainable themes with vigilance around macro-driven valuation pressures. Investors should expect a disciplined, research-led approach focused on companies that combine transition credibility with improving financial profiles.