Artesian Green & Sustainable Bond Fund
The Fund will invest in a diversified portfolio of liquid, investment grade fixed and floating rate green, sustainable and social corporate bonds (For Wholesale Investors Only)
The Fund will aim to achieve returns above the Bloomberg AusBond Composite 0-5 Yr Index, by leveraging Artesian’s extensive network of employees and relationships, combined with its lengthy experience in the bond markets throughout major periods of both turmoil and calm.
Note the target return is not a forecast. It is merely an indication of what the Fund aims to achieve over the medium term on the assumption that credit markets remain relatively stable throughout the investment timeframe. The Fund may not be successful in meeting the target return. Returns are not guaranteed.
The Fund aims to provide investors with daily liquidity and quarterly distributions through investment in an actively managed and diversified portfolio of Australian and international fixed income securities, such as floating and fixed rate corporate bonds. The Investment Manager will leverage its trading, research and analysis teams while seeking to enhance the yield of the Fund in a low yield environment not previously experienced in Australia. The Fund’s concentrated exposure to green, sustainable and social bonds, aims to provide investors with an exposure to a difficult to access asset class.
ESG Focus
Artesian believes that analysing ESG characteristics enhances traditional credit analysis by providing a fuller understanding of the risk profile of each issuer.
Investment Approach
The Investment Manager’s strategy for the Fund is to invest in a diversified portfolio of Australian and international green, sustainable and social bonds. Artesian believes it is not necessary to sacrifice best of class risk adjusted returns while pursuing transformational impact investments.
Investment strategy
- The Fund will invest in green, sustainable and socail corporate bonds issued by global companies.
- Investment grade fund with an emphasis on liquidity and credit quality.
- ESG integrated investment research to provide optimal investment decisions.
- Large global, experienced team of fixed income professionals trading and analysing credit markets 24 hours a day.
- Providing investors a diversified exposure to a very hard to access asset class – green, sustainable and social bonds.
- Excess returns are expected to be generated through a well-constructed and actively managed portfolio in the corporate bond market.
Capital preservation
A key feature of bonds is that there is a known maturity date and, at that date, the issuer returns the principal amount of the bonds to investors. The only risk to this occurring is if the issuer defaults. To mitigate this risk, the Investment Manager will invest at least 90% of funds not invested in cash, in investment grade debt. Investment grade bonds have a credit rating of BBB- or higher (rated by Standard & Poor’s or Fitch), or Baa3 or higher (rated by Moody’s), and are deemed to be lower risk than non-investment grade bonds but higher risk than Australian government issued debt. The regular income of bonds with a known principal repayment date, allows investors to manage their cash flows and preserve capital.
Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975, is the responsible entity for the Artesian Green & Sustainable Bond Fund (Fund). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT). This publication has been prepared by Artesian Corporate Bond Pty Ltd ACN 618 342 895 (Artesian), the investment manager for the Fund and an authorised representative of Artesian Venture Partners Pty Ltd ABN 58 112 089 488 AFSL 284492 (Artesian VP), to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Artesian, Artesian VP, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. The Fund Target Market Determination is available by visiting www.eqt.com.au/insto. A Target Market Determination is a document which describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the investment manager may need to review the Target Market Determination for this financial product. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product. Copies of the product disclosure statement can be obtained by visiting www.eqt.com.au/insto or request a copy by emailing Artesian at greenbondoperations@artesianinvest.com, visiting www.artesianinvest.com or calling +61 3 9028 7392.
Artesian are a global, absolute return fixed income fund manager focused on relative value opportunities in credit markets. We manage niche strategies with the overriding goal of producing consistent alpha and best in class risk adjusted returns for our investors. We are committed to integrating ESG into our 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.
Matthew co-founded Artesian in 2004 and is the Chief Investment Officer.
As well as being responsible for the firm’s global fixed income business, Matthew also sits on the investment committee of several Artesian VC Funds. With Matthew’s experience across both asset classes, it enables him to provide oversight into the operations of the global funds management business.
Prior to Artesian, Matthew worked in investment banking at Macquarie Bank, HSBC and ANZ.
He has a Bachelor of Economics from Monash University and a Graduate Diploma Financial Planning from Deakin University.
David joined Artesian in 2013 and is the Head of Australian Fixed Income business.
He is the Portfolio Manager of the Artesian Corporate Bond Fund and the Artesian Green & Sustainable Bond Fund.
Prior to joining Artesian, David spent 9 years in the United Kingdom working for Deutsche Bank and RBS.
David has a Master of Applied Finance from Kaplan (formerly Securities Institute of Australia). Whilst studying at the Securities Institute of Australia David was awarded with the Macquarie Bank Dux Award for being the top graduating student.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.artesianinvest.com/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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