Ardea Real Outcome Fund
31 March 2024
Key Facts
| Index Used: | Bloomberg AusBond Composite 0+ Yr Index | Discretionary/Quantitative: | Combination |
| Peer Group: | Fixed Income - Bonds | FUM (millions): | AU$ 4,572.34m |
| Investment Style: | N/A | Fund Inception Date: | July 2012 |
| Geographic Mandate: | Australia/Global | Latest Return Date: | March 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | AU$ 10,000 | Investment Frequency: | Daily |
Manager Details
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.
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.
Strategy Description
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.
Fund Fees
| Management Fee: | 0.5% | Performance Fee: | 0% |
| Buy Spread: | 0.05% | Sell spread: | 0.05% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Fidante Partners |
| Administrator: | Fidante Partners | Prime Broker: | N/A |
| Custodian: | Citibank | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Ardea Real Outcome Fund has a track record of 11 years and 9 months and has outperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in July 2012, providing investors with an annualised return of 3.35% compared with the benchmark's return of 2.69% over the same period.
The Manager has delivered these returns with 1.59% less volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.6 since inception. The fund has provided positive monthly returns 74% of the time in rising markets and 72% of the time during periods of market decline, contributing to an up-capture ratio since inception of 25% and a down-capture ratio of -34%.
The Ardea Real Outcome Fund returned -1.11% in March, a difference of -2.23% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which rose by +1.12%. Over the past 12 months, the fund's best monthly return was +0.88% compared with the benchmark's best return of +3.01%, and its worst monthly return was -1.87% vs the benchmark's worst return over the same period of -1.95%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -0.07 | 0.69 | -1.11 | NA | NA | NA | NA | NA | NA | NA | NA | NA | -0.50 |
| 2023 | -1.54 | 1.22 | 3.41 | -0.46 | -0.17 | 0.15 | 0.88 | 0.46 | 0.19 | 0.71 | -0.10 | -1.87 | 2.82 |
| 2022 | -0.24 | -0.97 | 0.46 | 1.00 | -0.25 | 0.84 | -2.09 | 0.63 | 1.83 | 1.23 | -1.87 | 0.47 | 0.96 |
| 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 | NA | NA | NA | NA | NA | NA | 0.02 | -0.32 | 0.61 | 1.07 | -0.12 | -0.29 | 0.97 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has returned -0.73% compared with the benchmark which has returned +1.47%, for a difference of -2.2%. Since inception in July 2012, the fund has returned +3.35% per annum, a difference of +0.66% relative to the benchmark which has returned +2.69% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $147. The same amount invested in the benchmark over the same period would have become $136.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 2.64% vs the index's 5.4%. The annualised volatility of the fund's returns since inception in July 2012 is 2.51% vs the index's 4.1%. Over all other periods, the fund's returns have been consistently less volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 0.4 for performance over the most recent 60 months to a low of -1.8 over the latest 12 months, and is 0.6 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since July 2012 is 0.23.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in July 2012 in the months where the market was positive, the fund has provided positive returns 74% of the time, contributing to an up-capture ratio for returns since inception of 24.88%. Over all other periods, the fund's up-capture ratio has ranged from a high of 15.9% over the most recent 60 months to a low of -26.06% over the latest 12 months.
Performance in Negative Markets
Since inception in July 2012 in the months where the market was negative, the fund has provided positive returns 72% of the time, contributing to a down-capture ratio for returns since inception of -33.96%. Over all other periods, the fund's down-capture ratio has ranged from a high of -21.2% over the most recent 60 months to a low of -45.65% over the latest 24 months. A negative down-capture ratio indicates that, on average, the fund delivered positive returns in the months the market fell.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 0.56 for performance over the most recent 60 months to a low of -1.66 over the latest 12 months, and is 0.87 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sortino for performance since July 2012 is 0.29.
Drawdown
Over the past 12 months, the fund's largest drawdown was -2.45% vs the index's -5.2%, and since inception in July 2012 the fund's largest drawdown was -4.26% vs the index's maximum drawdown over the same period of -13.2%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Fixed Income - Bonds as of March 2024
The performance of the Ardea Real Outcome Fund ranked it in the first or second quintile for all KPIs over 5 & 7 years. Over 3 years the fund ranked in the first quintile for Largest Drawdown and second quintile for Total Return and Volatility, while it ranked in the second quintile for Volatility and Largest Drawdown over 1 year.
Over the past 12 months, the fund has returned -0.73% compared with the peer group which has returned an average of +4.32%, for a difference of -5.05%.
The fund's returns over the past 12 months have been achieved with a volatility of 2.64% vs the peer group's average volatility of 3.17%. The annualised volatility of the fund's returns since inception in July 2012 is 2.51% vs the peer group's 2.78%. Over all other periods, the fund's volatility relative to the peer group has been varied.