What can the Artesian Short Duration Corporate Bond Fund (NZD) actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Fixed rate corporate bonds | 35% | 0% | 70% |
| Floating rate corporate bonds | 55% | 0% | 100% |
| Cash | — | 0% | 100% |
| Exposure to foreign bond issuers | 30% | 0% | 50% |
| Exposure to Australian bond issuers | 60% | 0% | 100% |
| Exposure to investment grade debt | 90% | 72% | 100% |
| Exposure to non-rated debt | 0% | 0% | 10% |
| Exposure to non-investment grade debt | 0% | 0% | 10% |
| Exposure to any one bond as a % of total portfolio | 3% | 0% | 20% |
| Exposure to any one bond as a % of total bond issue size | — | 0% | 10% |
Mandate flexibility (sum of max − min across all ranges): 498%. Wide range — high manager discretion typical of active management.
Explicit exclusions (7)
- Tobacco production
- Alcohol production
- Pornography production
- Munitions production
- Palm oil production
- Gaming equipment production
- Fossil fuel exploration and/or production
Responsible-investment approach
Artesian integrates ESG factors into all investment decisions, applying both positive and negative screens. Negative screens exclude issuers involved in tobacco, alcohol, pornography, munitions, palm oil, gaming equipment and fossil fuel exploration/production. Positive screens highlight companies with strong responsible investment practices such as net-zero targets and gender equity. Artesian is a PRI signatory and Certified B Corporation.
Derivatives policy
Artesian uses derivatives to manage currency exposure. Because derivatives cannot be screened, the exclusion criteria set out in the SIPO do not apply to them, meaning investors may be exposed to otherwise excluded activities.