AFM Fund Profile — Ardea Real Outcome Fund

Fund & Manager Details

Key Facts

Fund Type: Single Discretionary/Quantitative: Combination
Strategy: Fixed Income FUM (millions): AU$9,071.6m
Style: N/A Fund Inception Date: Since 20 July 2012
Geographic Mandate: Australia/Global Latest Return Date: May 2022
Fund Domicile: Australia Investor Type: Wholesale & Retail
Status: Open Reporting Status: Current

Manager Details and Fund Description

Manager: Ardea Investment Management Total FUM for all funds: AU$13,300m
Manager Overview:
Founded in 2008, Ardea Investment Management is a fixed income investment manager with a focus on delivering controlled returns to clients. Their boutique structure gives them the opportunity to tailor investment solutions to suit their investors' needs and deliver consistent alpha within a risk-controlled framework.

Ardea adopts a unique 'relative value' investment approach which 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 its employees to foster both the long-term alignment of interests with clients and the stability of the investment team, which possesses longevity and diverse experience across global fixed income markets.
Fund/Strategy Overview:
Ardea's Real Outcome Fund adopts the 'relative value' investment strategy to access a wide range of fixed income return sources that are not affected by the level or direction of interest rates.

The investment approach is based on generating returns from relative value strategies that aim to exploit mispricing between comparable fixed income securities which are related to each other and have similar risk characteristics but are priced differently. The Fund seeks to deliver stable returns that are independent of the broader fixed income and equity market fluctuations.

The portfolio is constructed to achieve risk diversification by combining many modestly sized and uncorrelated relative value positions, so that no single position becomes a dominant driver of overall portfolio risk. Ardea believe 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.
Other funds operated by manager:
Ardea Australian Inflation Linked Bond Fund

Investment Details

Investment Terms

Minimum Investment: Minimum Additional Investment: Minimum Term: Investment Frequency:
AU$10,000 AU$1,000 Daily
Regular Savings Option: Regular Savings Minimum Amount : Regular Savings Maximum Amount : Regular Savings Frequency :
Yes AU$100 Monthly 
Redemption Notice: Redemption Frequency: Notes:
Daily
Distributions: Distribution Frequency: Last Distribution Date: Last Distribution Amount:
Yes Quarterly AU$

Structure

Offshore/Onshore: Fund Structure: Share Classes: Trustee/Responsible Entity:
Onshore Unit Trust AU$ Fidante Partners
Administrator: Prime Broker: Custodian: Legal:
Fidante Partners N/A Citibank N/A

Fund Fees

Management Fee: Performance Fee: High Water Mark: Hurdle:
0.5% 0% N/A N/A
Buy Spread: Sell spread: Early Redemption Fee: Fees Notes:
0.050% 0.050% No

Performance & Risk

Fund Inception Date: 20 July 2012 Annualised Return: 3.64%

Key Performance

Latest Result: Latest 3 Months: Latest 6 Months: Latest 12 Months:
-0.25% 1.21% 0.40% -1.53%
Latest 24 Months p.a.: Latest 36 Months p.a.: Latest 48 Months p.a.: Latest 60 Months p.a.:
1.45% 2.93% 3.75% 3.64%
% Positive Months (Since Inception): Average Return: Average +ve Return: Average -ve Return:
74.79% 0.30% 0.54% -0.43%
Best Month: Worst Month: Up Capture Ratio (Since Inception): Down Capture Ratio (Since Inception):
1.67% -1.51% 42.31% -21.11%
Largest Drawdown (Since Inception): Longest Drawdown (Since Inception): Current Drawdown (%): Current Drawdown (Months):
-4.26% 18 months -1.53% 12 months

Risk

Annualised Standard Deviation (Since Inception): Downside Deviation (Since Inception): Sortino Ratio (Since Inception): -
1.94% 1.15% 1.78 -
Sharpe Ratio (12 months): Sharpe Ratio (36 Months): Sharpe Ratio (60 Months): Sharpe Ratio (Since Inception):
-0.89 1.39 1.65 1.06
Please note, Sharpe and Sortino ratios are calculated using the Australian Risk Free Rate

Ranking, Research & Availability

Fund quintile in it's Peer group (Fixed Income - Bonds).

AFM's Quintile Rankings show performance and Key Performance Indicators (KPI's) of Ardea Real Outcome Fund compared to a peer group of funds with a similar strategy and geographic mandate. Each green square places a fund in one quintile (or 20%) of its peer group - five indicating that the fund is in the top (best) quintile for the corresponding KPI.

As a reference point the equivalent "quintile" performance of the peer group's underlying market index is also indicated by the red dot.

1 Year
3 Year
5 Year
7 Year
Ardea Real Outcome Fund
Bloomberg AusBond Composite 0+ Yr Index

External Research and Ratings: As reported by each Fund Manager.

Morningstar Analyst Rating: Bronze
Lonsec: Highly Recommended, October 2020
Zenith: Recommended, May 2018

Availability:As reported by each Fund Manager.

Available on Investment Platforms:
BT Wrap, Colonial FirstChoice, HUB24, Macquarie Wrap, Netwealth, Powerwrap, Asgard, IOOF, MLC Wrap, AMP MyNorth, BT Panorama, mFund, Colonial FirstWrap, MLC Navigator, uXchange, Oasis, Mason Stevens, Praemium

News & Insights

Consolidation and rising tail risks
27 Jun 2022 - Ardea Investment Management
Equity markets hit new year-to-date lows in May, consistent with slowing growth and recession risks. Growth concerns support consolidation in bonds, but inflation is yet to peak and central banks seem some distance from a...
Read more...
The Ardea Alternative - Foreign Currency Management
20 Apr 2022 - Ardea Investment Management
Dr Laura Ryan and Tamar Hamlyn are joined by Dr Nigel Wilkin-Smith to discuss the importance of currency management for AUD investors, along with the backdrop created by the regulatory environment in superannuation, particularly the YFYS...
Read more...
Geopolitical volatility and stagflation fears
17 Mar 2022 - Ardea Investment Management
We outline some broad implications of the Russia/Ukraine crisis for global rates markets: risk aversion, trade links, inflation dynamics and money market funding spreads.
Read more...

Fund Documents

Manager's Report

Product disclosure/IM



Fund Performance

Historical Performance (all figures shown here are net of fees unless otherwise stated)

Year Jan % Feb % Mar % Apr % May % Jun % Jul % Aug % Sep % Oct % Nov % Dec % YTD %
2022 -0.24 -0.97 0.46 1.00 -0.25 N/R N/R N/R N/R N/R N/R N/R -0.02
2021 0.13 0.14 0.38 0.14 0.14 -0.55 0.00 -0.27 -0.50 -0.69 0.08 0.42 -0.60
2020 0.69 1.26 -0.69 0.52 0.39 0.88 1.16 0.07 0.59 0.54 0.39 -0.11 5.82
2019 0.59 0.67 1.67 0.60 0.93 1.06 0.58 1.19 0.29 0.33 0.21 -0.01 8.39
2018 0.90 -0.11 0.02 0.27 0.52 0.01 0.10 -0.10 0.23 0.64 0.45 0.31 3.29
2017 0.14 0.27 1.15 0.60 0.84 -0.29 0.14 0.22 0.49 0.61 0.29 0.09 4.65
2016 -0.86 -0.78 0.73 -0.13 0.94 0.42 1.25 0.34 0.15 0.58 0.18 1.20 4.08
2015 1.47 1.23 0.78 0.09 -1.51 -0.43 0.37 0.28 -1.19 0.18 -0.37 -0.02 0.83
2014 -0.83 0.77 0.36 0.61 1.22 0.35 0.35 0.40 -0.21 -0.37 0.80 0.43 3.93
2013 0.25 0.93 0.17 -0.02 0.56 0.45 0.55 -0.20 0.09 0.35 0.51 1.32 5.07
2012 N/R N/R N/R N/R N/R N/R 0.02 -0.32 0.61 1.07 -0.12 -0.29 0.97

Historical Financial Year Performance (all figures shown here are are percentage per month net of fees unless otherwise stated)

Year Jul % Aug % Sep % Oct % Nov % Dec % Jan % Feb % Mar % Apr % May % Jun % FYTD %
2021/2022 0.00 -0.27 -0.50 -0.69 0.08 0.42 -0.24 -0.97 0.46 1.00 -0.25 N/A -0.98
2020/2021 1.16 0.07 0.59 0.54 0.39 -0.11 0.13 0.14 0.38 0.14 0.14 -0.55 3.03
2019/2020 0.58 1.19 0.29 0.33 0.21 -0.01 0.69 1.26 -0.69 0.52 0.39 0.88 5.75
2018/2019 0.10 -0.10 0.23 0.64 0.45 0.31 0.59 0.67 1.67 0.60 0.93 1.06 7.38
2017/2018 0.14 0.22 0.49 0.61 0.29 0.09 0.90 -0.11 0.02 0.27 0.52 0.01 3.51
2016/2017 1.25 0.34 0.15 0.58 0.18 1.20 0.14 0.27 1.15 0.60 0.84 -0.29 6.60
2015/2016 0.37 0.28 -1.19 0.18 -0.37 -0.02 -0.86 -0.78 0.73 -0.13 0.94 0.42 -0.44
2014/2015 0.35 0.40 -0.21 -0.37 0.80 0.43 1.47 1.23 0.78 0.09 -1.51 -0.43 3.03
2013/2014 0.55 -0.20 0.09 0.35 0.51 1.32 -0.83 0.77 0.36 0.61 1.22 0.35 5.20
2012/2013 0.02 -0.32 0.61 1.07 -0.12 -0.29 0.25 0.93 0.17 -0.02 0.56 0.45 3.36