Linkers surge on UK inflation shock: a British history lesson
Ardea discuss the surge on UK inflation linked bonds and benefit to Australian investors over the past 12 months.
Read more
Ardea Investment Management
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.
For more information, please visit www.ardea.com.au
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 Australian Inflation Linked Bond Fund
Strategy
The Ardea Australian Inflation Linked Bond Fund (the Fund) primarily invests in securities within the Bloomberg AusBond Inflation Government 0+ years Index plus government and semi-government bonds in Australia to achieve an inflation-linked return. The investment approach is based primarily on fundamental analysis with a focus on an accurate measurement and disciplined management of risk. Ardea achieves diversification in the Fund by implementing multiple trade ideas to capture alpha from market inefficiencies whilst maintaining market beta and minimising transaction costs.
Suits Investors Seeking:
- Protection against inflation
- Potential for capital growth over the long term
- To invest for at least three years
Benchmark
Bloomberg AusBond Government Inflation Index 0+ years
Overview
Current as of May 2017
18 March 2010
Inception Date
0.35% p.a.
Management Cost
3 Years
Suggested Minimum Time Frame
A$364.3M
Funds Under Management*
Quarterly
Distribution Frequency
$10,000
Minimum Investment
HOW0062AU
APIR Code
*Funds under management displayed at a class level only.
Interests in the Ardea Inflation Linked Bond Fund ARSN 141 165 362 are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners). Fidante Partners has appointed Ardea Investment Management Pty Limited as the investment manager of the Fund.
Fund Performance (Net) as at: 31 May 2017
1.10%
1 month
3.20%
3 months
3.98%
1 year
4.82%
3 years (p.a.)
4.35%
5 years (p.a.)
-
10 years (p.a.)
7.41%
Since inception (p.a.)
Past performance is not a reliable indicator of future performance.
1. Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
2. The inception date for the Fund is 18 March 2010
Unit Prices and Distributions
To view historical unit prices and distributions click here
Cumulative Fund Growth
loading...
Past performance is not a reliable indicator of future performance.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
Ardea Real Outcome Fund
Strategy
The Ardea Real Outcome Fund (the Fund) aims to provide a minimum return of CPI + 2.5% - 3.5%. This is achieved through incorporating an efficient benchmark replication, and generating returns through interest rates and arbitrage. These are managed within an overall risk framework.
Suits Investors Seeking:
- Stable returns above inflation to preserve capital
- Diversification and reliable income
- To invest for at least two years
Benchmark
CPI
Overview
Current as of May 2017
20 July 2012
Inception Date
0.50% p.a.
Management Cost
2 Years
Suggested Minimum Time Frame
A$119.9M
Funds Under Management*
Quarterly
Distribution Frequency
$10,000
Minimum Investment
HOW0098AU
APIR Code
*Funds under management displayed at a class level only.
Interests in the Ardea Real Outcome Fund are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners). Fidante Partners has appointed Ardea Investment Management Pty Limited as the investment manager of the Fund.
Fund Performance (Net) as at: 31 May 2017
0.84%
1 month
2.61%
3 months
7.36%
1 year
3.24%
3 years (p.a.)
-
5 years (p.a.)
-
10 years (p.a.)
3.68%
Since inception (p.a.)
Past performance is not a reliable indicator of future performance.
1. Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
2. The inception date for the Fund is 20 July 2012.
Unit Prices and Distributions
To view historical unit prices and distributions click here
Cumulative Fund Growth
loading...
Past performance is not a reliable indicator of future performance.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
Ardea Real Outcome Plus Fund
Strategy
The Ardea Real Outcome Plus Fund (the Fund) aims to provide a minimum return of CPI + 3.5%-4.5%. This is achieved through incorporating an efficient benchmark replication, and generating alpha through three distinct strategies - credit, interest rates and arbitrage. These are managed within an overall risk framework. The broadened investment universe and higher allocation to riskier asset classes, allows the Fund to target higher returns than the Ardea Real Outcome strategy.
Suits Investors Seeking:
- Stable returns above inflation to preserve capital
- Diversification and reliable income
- To invest for at least two years
Benchmark
CPI
Overview
Current as of May 2017
18 March 2016
Inception Date
0.60% p.a.
Management Cost
2 Years
Suggested Minimum Time Frame
A$97.9M
Funds Under Management*
Quarterly
Distribution Frequency
$10,000
Minimum Investment
HOW0162AU
APIR Code
*Funds under management displayed at a class level only.
Interests in the Ardea Real Outcome Plus Fund are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners). Fidante Partners has appointed Ardea Investment Management Pty Limited as the investment manager of the Fund.
Fund Performance (Net) as at: 31 May 2017
0.58%
1 month
1.69%
3 months
5.95%
1 year
-
3 years (p.a.)
-
5 years (p.a.)
-
10 years (p.a.)
5.56%
Since inception (p.a.)
Past performance is not a reliable indicator of future performance.
1. Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
2. The inception date for the Fund is 18 March 2016.
Unit Prices and Distributions
To view historical unit prices and distributions click here
Cumulative Fund Growth
loading...
Past performance is not a reliable indicator of future performance.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.
Our Team
Related Resources
Two Charts we are Watching Closely Right Now
Ardea discuss three questions: What are the most important charts we are watching? What are they currently telling us? What are the implications for investors?
Read more
Trump Election... The Impact so Far
Ardea Flash Note: Ardea discuss the Trump election and how this will impact investors.
Read more