Ardea Investment Management

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Ardea Investment Management (Ardea) is a specialist fixed income investment boutique with a focus on delivering consistent alpha to clients through an investment process supported by a highly intuitive risk system.

About

Formed in 2008 by its four founding principles, Ardea is a boutique fixed income investment manager with a focus on delivering stable, risk-controlled returns to investors. With extensive capabilities across inflation linked and nominal bonds, as well as credit and cash markets, Ardea has a long and successful track record in managing fixed income portfolios from traditional, defensive products, inflation-linked bonds, and also benchmark unaware and objectives-based solutions. Across all of these strategies, the team seeks to identify and exploit inefficiencies to deliver excess returns over and above the relevant benchmark with comparatively low risk.  

Approach

Ardea’s focus is on low-risk, medium return strategies in the fixed income space. Portfolios are constructed to take advantage of particular inefficiencies through innovative ideas which maintain market beta but add alpha. These inefficiencies result from:

  • Supply and demand factors driven by market participation
  • Fundamental inefficiencies arising from market valuations which are inconsistent with economic fundamentals
  • Technical inefficiencies where assets or instruments with the same or similar risk characteristics are not priced consistently

As alpha is derived from inefficiencies in the market rather than wholly from directional risk taking, the portfolio risk taken is low relative to the net benefit to the client and relative to other asset classes such as equities. Ardea customises their investment approach by switching on or off, or scaling, their broad investment strategies - credit, interest rates and arbitrage – to take advantage of the inefficiencies above. Ardea has a proprietary set of risk management systems and processes that allow detailed assessment of the relative risks and value of these various assets, while a qualitative overlay ensures that trades bring the intended risk and return to the portfolio. 

Funds

Ardea Global Alpha Fund 

Strategy

The Ardea Global Alpha Fund (AGA) is a defensive fixed income solution that targets consistently low volatility returns, independent of market direction, which exceed cash rates whilst maintaining capital preservation. The Strategy can work as a defensive fixed income anchor to help your investment portfolio navigate the ups and downs of markets.

AGA adopts a low risk strategy by investing in high quality government bonds and related interest rate derivatives. Its investment universe explicitly excludes credit investments, and is restricted to ‘core interest rate’ markets which are the most reliably liquid segment of global fixed income markets.

Suits Investors Seeking:

  • Low volatility, stable returns
  • A defensive fixed income anchor with no exposure to credit risk
  • An uncorrelated source of returns
  • Reliable daily liquidity, even during periods of extreme market stress

Benchmark

GBP - SONIA – Sterling Overnight Index Average
EUR - Euro Short-Term Rate (€STR) 
USD -  Fed Funds 1 month
JPY -  JPY LIBOR 
 

1 March 2021

Inception Date

0.35%

Investment Management Fee (Class X)

 

Semi-Annual

Distribution Frequency for all share classes

15bp

Other Expenses

2 Years

Suggested Minimum Time Frame

 

 

The Team

Gopi Karunakaran
Co-Chief Investment Officer
Gopi Karunakaran
Stephen Clout
Chief Executive Officer
Stephen Clout
Tamar Hamlyn
Portfolio Manager, Macroeconomics
Tamar Hamlyn
Dumas
Portfolio Manager, Interest Rate Strategies
Jean Dumas
Ardea Cameron Shaw
Portfolio Manager, Interest Rate Strategies
Cameron Shaw
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Head of Research
Dr Laura Ryan
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Chief Operating Officer
Tracey Hunter
Darren Wadhera
Portfolio Implementation, Dealing
Darren Wadhera
Harry Singh
Portfolio Implementation, Dealing
Harry Singh
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Portfolio Implementation, Assistant Dealer
Ali Naylor
Mark Bonnici
Portfolio Implementation, Dealing
Mark Bonnici
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Relative Value Strategist
Alex Stanley
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Research Analyst, Relative Value
Lisa Jordan
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Analyst, Risk and Analytics
Tom McFadyen
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Office Manager
Anna Price

For information on the application of the Sustainable Finance Disclosure Regulation please refer to the Investment Manager’s website which provides disclosures and information for the sub-fund and the Investment Manager.

Related Resources

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Ardea Investment Management launches Ardea Global Alpha Fund

Ardea Investment Management launches Ardea Global Alpha Fund Read more