Global DEBT markets ARE DEEP AND LIQUID. HOWEVER, WHILE MARKETS ULTIMATELY PRICE IN ALL AVAILABLE PUBLIC INFORMATION, THIS DOES NOT OCCUR IMMEDIATELY. CERTAIN INVESTORS REACT MORE QUICKLY THAN OTHERS TO PUSH MARKETS TOWARDS THEIR FAIR VALUE EQUILIBRIUM.
individual debt issues ALSO HAVE unique RISK PREMIA SUCH as term, liquidity, volatility and credit which create ineFFICIENCIES and relative value trading opportunities.
ARTESIAN IS A GLOBAL BOUTIQUE CREDIT SPECIALIST, SMALL ENOUGH to capitalise on niche market opportunities and sufficiently agile to take advantage of temporary market inefficiencies.
Our investment process is implemented using a team approach, maximising the natural advantages of small firm agility. By maintaining flexibility in our investment process we can appropriately anticipate, react and adapt to the dynamics of market DEVELOPMENTS.
DEBT
Artesian's investment process is implemented using a team approach, maximising the natural advantage of small team flexibility
The 6 key components of Artesian's investment process are:
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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.
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Relative Value Analysis: is used to select a priority list of opportunities for portfolio optimisation, new issues and secondary market transactions.
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Credit Analysis & Selection: Artesian actively uses internal and external, quantitative and qualitative credit analysis/research to optimise the identified priority list of potential portfolio activity.
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ESG Integration: Artesian thoroughly analyses ESG risks to guide capital deployment and integrates this with overall relative value analysis.
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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.
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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"
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.
INVESTMENT PROCESS
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.
TECNICAL 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.
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.
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.
