Ardea Investment Management launches Ardea Global Alpha Fund
London, 11 March 2021 – Ardea Investment Management (‘Ardea’) announces the launch of the Ardea Global Alpha Fund (‘AGA’), a relative value fixed income fund investing in a global portfolio of high-quality government bonds and related derivatives. Ardea will leverage its strategic alliance and distribution partnership with Fidante Partners (‘Fidante’) in providing European investors with access to the Fund.
The fund targets low volatility returns exceeding cash rates and prioritises capital preservation and liquidity.
Founded in 2008, Ardea is one of Australia’s largest fixed income investment managers, with over £10bn AUM. AGA is a UCITS-compliant version of the Ardea Real Outcome Fund (‘ARO’), one of the fastest growing fixed income strategies in Australia. AGA will operate substantially the same strategy as ARO, which has consistently outperformed its benchmark over one, three and five year periods.
AGA’s investment approach focuses explicitly on relative pricing relationships between closely related government-linked securities. AGA is a unique fixed income fund as it targets positive returns that are independent of interest rate moves and general market volatility and delivers stable returns that are independent of the broader fixed income and equity market fluctuations that may impact conventional funds.
Gopi Karunakaran, Co-Chief Investment Officer at Ardea Investment Management, comments: “The expected returns from conventional fixed income portfolios are heavily challenged by the current record low interest rate levels and credit spreads as well as uncertainty about their future direction. Our relative value investing approach is therefore particularly compelling in the current environment, where conventional return sources are faced with more risk for less return and where simply holding bonds is no longer optimal as a defensive strategy.
“We are excited to be able to offer European investors access to this strategy which has been so popular with Australian investors seeking an uncorrelated source of return, an alternative source of income with low volatility and a defensive fixed income anchor with no exposure to credit risk.”
Ardea has a strategic arrangement with its minority shareholder, Fidante, which provides a range of support services encompassing operational, financial and client distribution services.
Fidante’s Head of Distribution in Europe, David Cubbin, comments: “We are thrilled to be bringing one of Australia’s fastest growing active fund managers to the European market, where there is a genuine need for defensive, uncorrelated returns.”
About Ardea Investment Management
Founded in 2008, Ardea Investment Management is one of Australia’s largest fixed income investment managers, entrusted with managing over £10bn on behalf of clients ranging from pension funds, insurance companies and government entities, to wholesale and retail investors. Ardea’s unique pure ‘relative value’ investment approach accesses return sources beyond the conventional to deliver volatility-controlled alpha that is independent of market direction and exhibits minimal correlation to broader fixed income and equity markets.
Ardea’s ‘relative value’ alpha can be packaged into absolute return, benchmark aware, liability driven or custom portfolios to suit varying client requirements. The firm maintains majority ownership by employees to foster both long-term alignment of interests with clients and stability of the investment team, which has longevity, diversity and depth of experience across global fixed income markets.
About Fidante Partners
Fidante Partners forms long-term alliances with talented investment teams to support and grow specialist investment management businesses. Through these strategic partnerships, it’s able to provide investors with some of the world’s most compelling investment strategies.
Fidante is a global investment management business with approximately £40.5bn* under management and forms part of the Challenger Limited Group, an ASX-listed investment management firm.
* As at 31 December 2020.
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