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
  • The Fund will invest in labelled corporate bonds issued by global companies, such as Green, Social or Sustainable Bonds. The designation is determined by the issuer of the bond.
  • An investment grade fund with an emphasis on liquidity and credit quality.
  • Artesian aims to provide optimal investment decisions by integrating ESG investment research in selecting which bonds to invest in. When considering a bond as a potential investment for the Fund, Artesian applies both positive and negative screens as part of its investment decision-making process.
  • Large global, experienced team of fixed income professionals trading and analysing credit markets 24 hours a day.
  • Returns in excess of the benchmark are expected to be generated through a well-constructed and actively managed portfolio in the corporate bond market.
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.

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: 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: