Janus Henderson Q3 2025 Global Sustainable Equity (ADR) — Portfolio Review

Janus Henderson’s Global Sustainable Equity (ADR) managed account delivered a mixed Q3 2025 as markets rotated between growth and defensive themes. The portfolio maintained its sustainability-first mandate while adjusting sector weights to address rising macro uncertainty and valuation dispersion. Managers trimmed select high-valuation growth names and redeployed proceeds into renewable utilities, industrial decarbonization plays and select healthcare franchises with resilient cash flows.

Sector allocation shifted modestly toward energy transition and industrials, reflecting the team’s conviction in companies enabling electrification and grid modernization. Technology exposure remained meaningful but more selective, focused on software and semiconductor firms with clear sustainability roadmaps and strong profitability metrics. Cash levels were modestly elevated versus the start of the quarter to preserve optionality amid potential rate volatility.

Top holdings continued to reflect a blend of climate-transition leaders and large-cap secular growers. The fund favored companies delivering measurable emissions reductions or those with business models enabling peers’ decarbonization. Where valuations looked stretched, the team prioritized companies with durable margins, strong governance and transparent ESG reporting. Currency and ADR structures were managed to limit translation risk for U.S.-listed investors.

Performance attribution for Q3 showed contributions from renewable infrastructure and select defensive healthcare names, while some heavyweight growth positions acted as headwinds amid profit-taking and sector rotation. Risk management remained central: position sizes were trimmed where concentration risk rose and environmental, social and governance (ESG) criteria continued to be applied in both buy and sell decisions.

Looking ahead, the portfolio team cites a cautious but constructive outlook. They expect opportunities in companies accelerating carbon reduction, energy storage, and sustainable supply-chain solutions — areas that may benefit from policy support and corporate capex cycles. Investors should expect ongoing rebalancing as managers weigh near-term macro risks against long-term secular trends in sustainability.

Investor takeaway: the Q3 review underscores an active, sustainability-driven approach that balances growth exposure with defensive, transition-oriented holdings. For investors focused on long-term sustainable returns, the managed account aims to combine ESG integration with disciplined risk controls to navigate a choppy macro backdrop.