Good addition for diversification especially for investors looking to gain ESG exposure

The Fund’s Background

The Altius Sustainable Bond Fund is an Australian fixed-income fund that invests in companies that conduct business and apply capital in a responsible manner,

taking into account a variety of environmental, social, and governance (ESG) issues. The Fund seeks to provide such a total return approach, offering duration exposure at suitable points in the cycle, as well as defensive positioning in a soaring rate environment, and invests solely in domestic assets, avoiding the importation of global risks (e.g. currency) and offering a different risk profile.

Philosophy of Investing
Bond markets, diverge from fundamental fair value due to a variety of factors such as central bank/government activity, fund flows, and investor positioning. Top down analysis is critical for identifying opportunities to exploit resulting inefficiencies in fixed income markets, while individual stock selection plays a secondary role in adding value for high grade bond markets such as Australia.

Investment Process
The diagram below best summarises Altus’ investment process. The Scenario – based forecasting and building a case for the Best Case, Central Case, and Worst Case is, the most important component of the investment process. By creating a well-thought-out and researched narrative for each case, the investment team is able to answer important questions and describe the macroeconomic landscape. . Generally agree with their current position in each case and the analysis that supports it. Not necessarily agree with their point of view, we do value the analysis and the manner in which the narrative was presented.

Source: Altius Asset Management

General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.