OPPORTUNITY & OBJECTIVE
OPPORTUNITY & OBJECTIVE
Global debt markets are deep and liquid, with fixed income yields giving investors certainty over a predetermined payment schedule.
However, individual debt issues also have unique risk premia such as term, liquidity, volatility, credit & impact metrics which create inefficiencies and relative value trading opportunities.
Artesian is a global credit & impact specialist, small enough to capitalise on niche market opportunities, and sufficiently agile to take advantage of temporary market inefficiencies. By maintaining flexibility in our investment process, we can appropriately anticipate, react, and adapt to the dynamics of market developments.
We look to deliver strong, risk-adjusted returns by emphasising quality, safety, and liquidity for our clients whilst focusing on capital preservation and the impact our capital is making on society and the environment.
Artesian's debt market investment process is implemented using a macro “top-down”, credit “bottom-up” approach with an ESG / Impact overlay.
Our investment process enables us to source, screen, rank, and analyse the optimal investment opportunities. The 6 key components of Artesian's investment process are:
1. Price Discovery: price discovery and data collection are critical tools in the investment process. Artesian gathers primary and secondary market information across global markets to inform relative value analysis. Combining our macro view with intelligence gained via our price discovery process, helps us identify parts of the debt capital structure that offer maximum value.
2. Relative Value Analysis: is used to select a priority list of opportunities for portfolio optimisation, new issues and secondary market transactions.
3. Credit & Impact Analysis: Artesian actively uses internal and external, quantitative and qualitative credit & impact analysis/research to optimise the portfolios risk, return and impact.
4. ESG Integration: Artesian thoroughly analyses ESG risks to guide capital deployment and integrates this with overall relative value analysis.
5. Risk Analysis: Artesian maintains a series of readily observable risk guidelines when implementing the investment strategy. Artesian employs stress and scenario testing to assess market outcomes.
6. Portfolio Construction: Artesian employs model portfolio construction to provide a template for portfolio managers to follow. This instills a macro discipline above shorter-term investment decisions.
“It does not matter how frequently something succeeds if failure is too costly to bear”
Nassim Nicholas Taleb - "The Black Swan"
Investment Overview
Boutique
Artesian is a global, boutique debt specialist focused on relative value opportunities to produce absolute returns.
Alpha
We identify niche opportunities in global debt markets & produce consistent alpha by leveraging our size/agility, experience & networks.
Returns
Returns take priority over asset gathering. Our strategies have inherent capacity constraints & we target optimal risk-adjusted returns.
ESG
We are committed to integrating ESG into our investment process with a focus on responsible & sustainable investment strategies.
Market Analysis
Artesian employs 3 types of market analysis to identify and capitalise on opportunities across global debt markets:
Fundamental Credit Analysis
Bottom-up credit analysis is undertaken by Artesian's credit analysis team.
Potential investments are initially screened via a proprietary “credit grid”, which summarises key quantitative and qualitative factors.
Bonds emerging from the credit analysis process that are deemed eligible for potential investment then undergo relative value analysis to determine optimal portfolio construction.
Relative Value Analysis
Artesian has developed proprietary relative value models to compare
investment opportunities across variables such as duration, credit spread, rating, capital structure, liquidity and yield.
These models provide real time feeds to Artesian’s research analysts and portfolio managers to identify, evaluate and execute attractive relative value opportunities across global fixed income markets in order to achieve optimal portfolio performance.
Technical Market Analysis
Technical analysis is another critical tool for Artesian's active fixed income fund management style.
Our technical analysis complements our fundamental and relative value analysis, providing trend and timing overlays in global fixed income markets.
Debt Funds
Australian Corporate
Bond Fund
The Fund invests in a diversified portfolio of liquid, predominately investment grade $AUD corporate bonds with greater emphasis on floating rate bonds to reduce interest rate risk.
High Impact Green Debt Fund (USD)
The Fund targets ‘dark’ green bonds & venture debt in projects that will have a disruptive deflationary effect on the cost of infrastructure necessary to limit global warming to 2ºC above pre-industrial levels.
Green & Sustainable
Bond Fund (AUD)
The Fund invests in a diversified portfolio of liquid, investment grade fixed and floating rate green and sustainable corporate bonds. The Fund invests in Australasian and global issuers, whilst aiming to de-risk this exposure by only investing in AUD securities.
Global Corporate Bond Fund
The Fund invests in global credit markets with a specific focus on relative value opportunities in corporate bonds.
This fund is closed for new investments.