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Artesian Green & Sustainable Bond Fund

Responsible Investing Approach

The Fund will invest in green, sustainable and social corporate bonds issued by global companies. The Investment Manager considers labour, environmental, social and ethical practices of companies when deciding to buy, hold or sell a security in the Fund. The Investment Manager has determined various products and practices attract unacceptable social and environmental risks. The Investment Manager adopts a zero-tolerance for issuers involved in the production of tobacco, alcohol, pornography, munitions, palm oil, gaming equipment and exploration and or production of fossil fuels. Artesian believes that engagement with companies in its investment portfolios and those in which it considers investment is critical. Active engagement over responsible investment is an extension of the process of engagement overall company matters that it considers may affect the investment proposition and valuation. 

Documents

Exclusions

The Investment Manager has determined various products and practices attract unacceptable social and environmental risks. The Investment Manager adopts a zero-tolerance for issuers involved in the production of tobacco, alcohol, pornography, munitions, palm oil, gaming equipment and exploration and or production of fossil fuels.

Exclusions Full/Partial Exclusion
Description
TobaccoTobacco Full

The Fund does not invest in issuers that derive any revenue from the production of tobacco.
 

AlcoholAlcohol Full

The Fund does not invest in issuers that derive any revenue from the production of alcohol.

WeaponsWeapons Full

The Fund does not invest in issuers that derive any revenue from the production of munitions.

Fossil fuel exploration, mining and productionFossil fuel exploration, mining and production Full

The Fund does not invest in issuers that derive any revenue from the exploration and/or production of fossil fuels.

Environmental damageEnvironmental damage Full

The Fund does not invest in issuers that derive any revenue from the production of palm oil.

GamblingGambling Full

The Fund does not invest in issuers that derive any revenue from the production of gaming equipment.

Adult entertainment/pornographyAdult entertainment/pornography Full

The Fund does not invest in issuers that derive any revenue from the production of pornography.

Inclusions

Artesian believes that the most effective  way to integrate responsible investment into an investment process over the long term is for investment teams to actively participate in the research and analysis of ESG factors and integration with other inputs into the investment process. Artesian considers environmental, social and governance factors. This information is considered on an absolute and relative-to-peers-basis; i.e., Artesian seeks to understand absolute and relative levels of impact and risk. 

Artesian's approach to Responsible Investing is applied consistently across the firm but is varied based on the asset classes managed. 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 teams' specific processes and strategies. 

Artesian believes that engagement with companies in its investment portfolios and those in which it considers investment is critical. Active engagement over responsible investment is an extension of the process of engagement overall company matters that it considers may affect the investment proposition and valuation. Engagement with the companies is an appropriate and important mechanism to inform companies of Artesian's perspectives - objectives and obligations - as a responsible investor and to better understand the ESG and wider perspective and drivers of the security issuers' in which it seeks to invest. Artesian seeks to understand each Company's understanding of its ESG impacts and risks and the rationale and process for management of these, whilst also signalling that of Artesian.

Climate action & towards net zero

UN Sustainable Development Goals

Conventions & Treaties

Artesian is a signatory to the UN Principles for Responsible Investing and has committed to adopting and implementing the PRI's six Principles for Responsible Investment across its business and for each investment strategy. In framing and developing its ESG Policy and implementation, Artesian is informed by and supports the Paris Agreement, SDG Goals and targets, and the Task force on Climate Related Financial Disclosure.

Conventions & Treaties Aligned
Description
Principles for Responsible Investment Yes

Artesian is a signatory to the UN Principles for Responsible Investing and has committed to adopting and implementing the PRI's six Principles for Responsible Investment across its business and for each investment strategy.

Task Force on Climate-related Financial Disclosures Yes

In framing and developing its ESG Policy and implementation, Artesian is informed by and supports the Task force on Climate Related Financial Disclosure.

Paris Agreement (UN Framework Convention on Climate Change) Yes

In framing and developing its ESG Policy and implementation, Artesian is informed by and supports the Paris Agreement.

UN Sustainable Development Goals Yes

In framing and developing its ESG Policy and implementation, Artesian is informed by and supports the SDG Goals and targets.

ESG Score

ESG Score
Does the portfolio have an ESG score? Not disclosed
If so, who is responsible for calculating the score? Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? Not disclosed
If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings?

Impact Investing Score

Impact Investing Score
Does the portfolio have an Impact Investment score? Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? Not disclosed
If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings? Not disclosed
Does the fund publish its holdings publicly? No

Policies, Certification & Marketing

Policies, Certification & Marketing
Responsible investing policy View Responsible investing policy document
Is the fund RIAA certified? No
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Artesian Green & Sustainable Bond Fund

Strategy Summary

The Fund will invest in global green and sustainable corporate bonds and cash. These corporate bonds will be issued by Australian and international companies. The Fund will invest in liquid securities which allow the Investment Manager to enter and exit positions easily (in normal market conditions) resulting in daily liquidity for investors.

Key Terms

Status: Open Inception Date: Sep 2020
Strategy: Fixed Income Style: N/A
Geography: Global Domicile: Australia
Investors: Wholesale & Retail Min. Investment: AU$25000
Mgmt. Fee: 0.5% Perf. Fee: %

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Australian Fund Monitors Pty Ltd
A.C.N. 122 226 724
AFSL 324476
Email: [email protected]
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