Artesian Capital has launched a new corporate-focussed, green and sustainable bond fund open to both wholesale and retail investors.
Artesian said the fund was seeded by an Australian ethically minded super fund, which has been running since late September.
The Artesian Green & Sustainable Bond Fund aims to offer investors access to a diversified portfolio of green, sustainable and social bonds.
Artesian said it is not necessary to sacrifice best of class, risk adjusted returns while pursuing transformational impact investments.
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The fund aims to outperform commonly used “vanilla bond indices” net of fees.
Artesian said while it only has a relatively short track record, the fund has beaten its benchmark in each of the five months since inception.
“We have been actively trading green bonds from our New York and London offices for five years, so we were delighted when we saw issuance take off in the AUD market,” Artesian chief investment officer Matthew Clunies-Ross said.
“In saying that, the AUD green and sustainable corporate bond market is still quite niche due to its size, so it made perfect sense for us to offer this type of fund to our investors.”
Artesian said the fund has proven popular since its inception, attracting institutional, wholesale and retail investors.
Artesian portfolio manager David Gallagher said the fund tackles climate change, as well as aims to address the United Nations 17 Sustainable Development Goals (SDGs).
“Whilst the fund is still in its infancy, we are quite proud we have been able to address 13 of the 17 SDGs, such as sustainable cities and communities, clean water and sanitation and gender equality through some of the corporate bonds owned by the fund,” Gallagher said.
“We are achieving this whilst not compromising on investment returns for our investors.”