Artesian to bring their green and sustainable public fixed income strategy to US investment market
NEW YORK, May 14, 2024 /PRNewswire-PRWeb/ -- SEC Registered Investment Advisors Carbon Collective Investing, specializing in climate friendly 401(k)/403(b) plans, and Artesian a global alternative investment management firm specializing in debt, venture capital and sustainable and impact investment strategies, today announced the launch of the Carbon Collective Short Duration Green Bond ETF, an actively managed fund now trading under the ticker CCSB. CCSB's goal is to democratize access to a diverse and liquid portfolio of green and sustainable public fixed income, and to seek total returns consistent with the preservation of capital.
"We didn't create CCSB for our portfolios just because it's the right thing to do, but because we believe it is the smarter thing to do, too." says Zach Stein, CIO, Carbon Collective Investing. "For the last 15 years, the default rate for green bonds is a fraction of the traditional bond market, and the green bond funds are longer duration, leaving weakness in portfolios. CCSB fills the capital preservation gap."
While Artesian has been investing in global green bond markets since 2013, the fund's genesis occurred in 2021 when Artesian partnered with the Clean Energy Finance Corporation, Australia's "green bank," who made a $25 million cornerstone investment in the Artesian Green and Sustainable Bond Fund, the first corporate focused green bond fund in the fixed income market. Following the fund's successful launch, the CEFC lifted its investment to $50 million as part of its commitment to transitioning Australia to a net zero economy.
"We believe that our Australian fund was one of the first short duration green bond funds globally," said John McCartney, Artesian Managing Partner. "Observing its considerable success within that market, we are now poised to introduce a similar fund, managed with comparable rigor, to the expansive U.S. market."
Investing primarily in short duration investment grade corporate green bonds, CCSB is managed by Artesian with a goal of delivering investors comparable returns to a generic short duration US corporate bond fund. But unlike a generic corporate bond fund, or even an ESG bond fund (meaning a bond fund that uses Environmental, Social, and Governance (ESG) data in its portfolio management), CCSB is also managed to deliver a quantifiable carbon impact.
"Green bonds are one of the only publicly available, liquid asset classes with a quantifiable impact down to the project level," says McCartney. "When a corporation raises a green bond, the funds are kept segregated to only be used on green or sustainable projects. Each year, green bond issuers publish a third-party audited sustainability report showing what projects the bond funds were used to fund."
To increase transparency into the underlying holdings on the fund, Carbon Collective and Artesian have built an impact dashboard that leverages Artesian's proprietary carbon calculator methodology, allowing investors to see the total carbon emissions abated and a brief description of the projects funded by each bond in the portfolio.
"The opportunity to bring this fund to market in the US meant we needed to look at a myriad of different partners," said McCartney. "But we see a future where there will be asset managers that are climate-aligned to the core. We believe Carbon Collective will be one of those asset managers."
Interested investors can learn more about CCSB at: https://www.carboncollectivefunds.com/
About Carbon Collective Investing
Carbon Collective Investing is a climate investment advisor with over 800+ clients and $120 million in assets under management as of May 6, 2024. They are 3(38) investment advisors for 401(k) and 403(b) plans, and have a robo advisor offering for individuals. They also have an equity ETF, CCSO. They were founded in 2020 by Zach Stein and James Regulinski. For more information, visit https://www.carboncollectivefunds.com/.
About Artesian
Artesian is a global alternative investment management firm specializing in debt, venture capital and sustainable and impact investment strategies. With over $1 billion in assets under management as of May 6, 2024, the firm has 8 locations globally and is a registered B Corp. Artesian was founded in 2004 by Jeremy Colless, Matthew Clunies-Ross and John McCartney. For more information, visit https://www.artesianinvest.com/.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (833) 794-0140 or visit our website at www.carboncollectivefunds.com. Read the prospectus or summary prospectus carefully before investing.
ESG investing is defined as utilizing environmental, social, and governance (ESG) criteria as a set of standards for a company's operations that socially conscious investors use to screen potential investments.
Investment Risks:
Concentrated Portfolio Risk. Although the Fund will not be concentrated in any particular industry, it will be concentrated in a limited number of securities. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
Equity Market Risk. The equity securities held in the Fund's portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests. Common stocks, such as those held by the Fund, are generally exposed to greater risk than other types of securities, such as preferred stocks and debt obligations, because common stockholders generally have inferior rights to receive payment from issuers.
High Yield Securities (Junk Bonds) Risk. Securities rated below investment grade are often referred to as high yield securities or "junk bonds. "Green" Bond Investment Consideration Risk. The Fund's emphasis on "green" and "sustainable" bonds may result in the exclusion of certain securities, potentially causing the Fund to miss market opportunities and at times, underperform compared to less environmentally selective funds. New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Climate Change Consideration Risk. Applying climate change and other filters to the investment process may exclude securities of certain issuers for non-investment reasons and therefore the Fund may forgo some market opportunities available to funds that do not use these criteria. As a result, at times, the Fund may underperform funds that are not subject to similar investment considerations. Additionally, the Fund will be more susceptible to events or factors affecting market segments that are focused on climate change solutions.
Foreign Securities Risk. Investments in securities or other instruments of non-U.S. issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies. Financial markets in foreign countries often are not as developed, efficient, or liquid as financial markets in the United States, and therefore, the prices of non-U.S. securities and instruments can be more volatile. In addition, the Fund will be subject to risks associated with adverse political and economic developments in foreign countries, which may include the imposition of economic sanctions. Generally, there is less readily available and reliable information about non-U.S. issuers due to less rigorous disclosure or accounting standards and regulatory practices.
Models and Data Risk. The composition of the Fund's portfolio is dependent on proprietary quantitative models as well as information and data supplied by third parties ("Models and Data").
Duration can measure how long it takes, in years, for an investor to be repaid a bond's price by the bond's total cash flows. Duration can also measure the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates.
Distributed by Foreside Fund Services, LLC.
Media Contact
Vicky Lay, Artesian, 1 7182087391, [email protected], https://www.artesianinvest.com/.
Breene Murphy, Carbon Collective, 1 7182087391, [email protected], https://www.carboncollective.co
SOURCE Carbon Collective
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