Ardea Real Outcome Fund
About this Fund
|FUND MANAGER||Ardea Investment Management|
|ASSET CLASS||FIXED INTEREST|
|INVESTMENT STYLE||The Fund invests in a global portfolio of high quality government bonds that prioritises capital preservation and liquidity.|
|INVESTMENT PROFILE||The Fund targets low volatility returns exceeding cash rates and inflation.|
|BENCHMARK||Australian Consumer Price Index|
|FUND SIZE||Australian Consumer Price Index|
|NO. OF HOLDINGS|
Benefits of investing in the Ardea Real Outcome Fund
Higher expected returns than cash
The Fund has a track record of delivering returns exceeding cash and inflation since inception5. As these returns are independent of market direction, Ardea IM expect to maintain a level of outperformance in rising and falling markets irrespective of the level of the cash rate.
An easier way to access your investment
The Fund offers daily liquidity, without break costs that can apply to certain cash products. Lower risk strategy than many income seeking investments3 The Fund includes investments in high-quality government bonds and cash securities, which have lower credit risk, unlike bank hybrids and corporate bonds, while also using sophisticated risk management strategies to help minimise volatility compared to dividend paying stocks.
Defensive fixed income anchor that helps diversify investment portfolio risk
The Fund targets positive returns that are independent of interest rate fluctuations and general market volatility. Combining this with proven risk management strategies allows the Fund to help diversify your portfolio risk away from equities, property and credit investments.
Protect the purchasing power of your investment
In addition to outperforming1 cash, the Fund targets returns exceeding inflation, which helps protect the long term purchasing power of your investment.
This Fund is designed for those seeking:
1Past performance is not an indicator of future performance. Neither fund performance nor capital is guaranteed.
About the Fund
The Ardea Real Outcome Fund seeks to strike the right balance, aiming for higher returns3than cash4 with less risk than many income seeking investments5.
For investors accepting some risk, the Fund may be a smarter alternative to cash and can work as a defensive fixed income anchor to help your investment portfolio navigate the ups and downs of markets.
3 Refers to the Fund’s historical track record since inception.
4 Cash on hand, demand deposits and money deposited with an Australian ADI that is available for immediate withdrawal; Short-term, highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of changes in value including cash management trusts.
5 When compared to Equities (S&P/ASX200 Accumulation), REITs (S&P/ASX200 A-REIT), Ausbond Composite (Australian govt and non-government bonds) and Ausbond Govt (Australian govt bonds).
Ardea IM’s unique investment approach combines the safety of investing in high quality government bonds with proven risk management strategies that protect your capital from interest rate fluctuations and general market volatility.
About Ardea Investment Management
Founded in 2008, Ardea Investment Management is one of Australia’s largest fixed income investment managers. Our global client base includes large institutional investors and a diverse range of wholesale and retail clients.
Ardea IM’s unique ‘relative value’ investment approach targets reliable risk-adjusted returns that are independent of market direction and exhibit low correlation to broader fixed income and equity markets. 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 and diversity of experience across global fixed income markets.
Fidante is the Responsible Entity of the Fund. As Responsible
How we invest your money
The Fund primarily invests in high quality government bonds, related derivatives and cash equivalent investments, across the most liquid segments of global fixed income markets. The Fund uses derivative instruments for risk management, as well as to improve the precision, efficiency and liquidity of implementing the Fund’s ‘relative value’ investment strategies. Derivatives are also used for hedging foreign currency exposure and the Fund is permitted to enter into repurchase agreements. Any proceeds from repurchase agreements may be invested in cash or cash equivalent securities.
Portfolio construction aims to control performance volatility and minimise exposure to varying market conditions, including extreme adverse scenarios. This is done by prioritising risk diversification and risk balance. The former, by intentionally diversifying risk across many modestly sized and independent investment strategies to mitigate the risk of a single strategy overwhelming the portfolio. The latter, by intentionally including a mix of different strategy types that can perform well in different scenarios, including larger allocations to strategies that outperform in adverse market environments. Ardea believes this approach delivers more stable returns, with lower risk, compared to portfolios with large directional positions that can overwhelm a fund’s risk/return profile. The Fund’s net derivative value will not exceed 10% of the net asset value of the Fund.
Ardea aims to hedge all foreign currency exposure back to the Australian dollar, as practicable.
Strategic asset allocation ranges
Asset Class6: Min (%) - Max (%)
6These are asset allocation ranges for the Fund. If market movements, investments into or withdrawals from the Fund, or changes in the nature of an investment, cause the Fund to move outside these ranges, or a limit set out in this PDS, this will be addressed by us or Ardea as soon as reasonably practicable.
7 Calculations are based on the gross market value of government bond holdings and the absolute net market value of derivative holdings.
You should read the full Product Disclosure Statement (PDS) and important information about Additional information about significant risks’ and ‘Important information for New Zealand investors' in the AIB before making a decision about the Fund.