The Fund is led by Portfolio Manager David Gallagher, who works closely with Artesian CIO Chief Investment Officer Matthew Clunies-Ross, who leads an investment team comprised of personnel located across Sydney, Melbourne, New York, London and Singapore.
Fund Outline
Investment Objective | To outperform the benchmark net of fees through active management. |
Benefits of Investing |
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About Artesian | Artesian are a global, absolute return fixed income fund manager focused on relative value opportunities in credit markets. They manage niche strategies with the overriding goal of producing consistent alpha and best in class risk adjusted returns for their investors. They are committed to integrating ESG into their investment process with a focus on responsible investment. Artesian has managed specialised funds focused on credit arbitrage and relative-value strategies across global financial markets since 2004 from its New York, London, Singapore, Shanghai, Melbourne and Sydney offices. |
Limits |
The asset classes in which the Fund invests are: Green Bonds – target exposure 70% (range 0% to 100%), Sustainable Bonds – target exposure 15% (range 0% to 100%), Social Bonds – target exposure 10% (range 0% to 100%); cash – target exposure 5% (range 0% to 100%). The Fund may also invest in other labelled bonds as these markets mature and new products become available. |
Benchmark | Bloomberg AusBond Composite 0-5 Yr Index, 100% hedged to NZD. |
Hedging | Permitted range 0-100%, with a target of 100% |
Structure | Portfolio Investment Entity (PIE) registered |
Suitability | We recommend a minimum investment period of 2 - 4 years. |
Fund Details | Date of Establishment: 9 June 2023 |
Manager: Artesian Corporate Bond Pty Ltd (‘Artesian’) | |
Supervisor: The New Zealand Guardian Trust Company Limited | |
Auditor: PricewaterhouseCoopers | |
Minimum Amount for: | Initial Investment - $10,000 |
Additional Investment - $1,000 or $100 per quarter with a regular savings plan | |
Withdrawal - $2,000 | |
Fees | Entry, Exit & Switch Fees - Nil |
Management Fee – 0.34% p.a. plus GST | |
Performance Fee - Nil | |
Trustee, custody and administration fees - Capped at 0.25% p.a. plus GST | |
Other Fund expenses - Abnormal or one-off costs, brokerage, all taxes that may be incurred by the Fund | |
Distribution | Distributions will be paid quarterly, at the Manager’s discretion. |
Applications & Withdrawals | Daily, by 2.30pm (NZ time) to receive that COB price. |
Unit pricing | Available here |
Please click here for the fund Fact Sheet
Please click here for the fund Monthly Report
Investment Policies
A fundamental cornerstone of Artesian’s strategy is to build a sustainable investment platform delivering long-term performance. Artesian believes that a proactive approach to responsible investment issues and drivers provides advantages to investment performance. In doing so, Artesian aim to mitigate risk and deliver greater long-term performance. Artesian believes that analysing ESG characteristics enhances traditional credit analysis by providing a broader, enhanced understanding of the risk profile of each issuer.
Artesian sees the global labelled (green, sustainable and social) bond market as an opportunity for investors to facilitate positive change. The rise of the green, sustainable and social bond market and the innovation of sustainability-linked bonds are prime examples of how investor demand, capital market innovation and corporations can foster positive impact, whilst improving returns with quality fixed income investments.
For Artesian, responsible investing means incorporating into the investment process consideration of the actions and impacts on stakeholders by companies. Artesian does not differentiate ESG practices and other practices. Responsible investment integration occurs across Artesian’s investment platform, but varies recognising that responsible investment integration should be specific to the asset class, capital structure, sector and geography and the investment team’s specific processes and strategies. As a result, a Responsible Investment Sub Policy has been developed for the Fund.
Artesian’s fixed income responsible investment objectives include:
- Funding bond issuers that are aiming to generate positive externalities for society.
- Creating resilience for those firms that address the needs of society in a responsible way.
- Using credit metrics and ESG analysis/screening to fund sustainable business models with the aim of avoiding fat-tail risks for investors.
- Funding bond issuers that are striving for business models that aim to be inclusive of all stakeholders.
In Artesian’s approach to responsible investment, ESG factors are considered fundamental to Artesian’s business. Indeed, many of Artesian’s investment products are grounded in the investment proposition of investing for impact.
As part of this, Artesian assess and integrate ESG factors into investment analysis and decisions. This is as a result of Artesian’s view that ESG factors can have an impact on the financial value of an investment and also that investments have impact.
For example, Artesian is informed by and supports:
- The Principles for Responsible Investment (PRI).
- The PARIS Agreement.
- The Sustainable Development Goals (SDG) and Targets.
- The Task Force on Climate-related Financial Disclosure.
Artesian are a signatory to the United Nations supported PRI. The PRI provides global principles and a framework to help Artesian integrate the consideration of ESG issues into their investment decision-making and portfolio construction framework. As part of this process Artesian report annually to the PRI on their adherence to these policies. Further information can be found on the PRI website: https://www.unpri.org/signatory-directory/ artesian-capital-management-pty-ltd-/4140.article
Artesian has also been certified as a B Corporation. Certified B Corps are a community of companies seeking to meet the highest standards of social and environmental performance. They have all submitted to a rigorous assessment process, and are required to adhere to measures of transparency and accountability. Further information can be found on the B Corporation website: https://www.bcorporation.net/en-us/find-a-b-corp/company/artesian-capital-management-lp
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (ETL3604AU (Artesian Corporate Bond Fund) and ETL8782AU (Artesian Green & Sustainable Bond Fund) assigned June 2024) referred to is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines