Ardea Australian Inflation Linked Bond Fund
30 April 2024
Key Facts
| Index Used: | Bloomberg AusBond Composite 0+ Yr Index | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Fixed Income - Bonds | FUM (millions): | AU$ 366.83m |
| Investment Style: | N/A | Fund Inception Date: | March 2010 |
| Geographic Mandate: | Australia | Latest Return Date: | April 2024 |
| Investor Type: | Wholesale | 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 primarily on fundamental analysis with a focus on an accurate measurement and disciplined management of risk. Through active management and by using a range of investment strategies, Ardea believes value will be added over the medium to long term.
The investment universe is comprised mainly of securities within the UBSA Government Inflation Index 0+ years plus nominal government bonds and nominal semi-government bonds. The investment universe will also typically consist of inflation derivatives, interest rate derivatives, bank bills and negotiable certificates of deposit.
The Fund is allowed to enter into repurchase agreements.
Fund Fees
| Management Fee: | 0.35% | Performance Fee: | % |
| Buy Spread: | 0.125% | Sell spread: | 0.125% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | N/A |
| Administrator: | N/A | Prime Broker: | N/A |
| Custodian: | N/A | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Ardea Australian Inflation Linked Bond Fund has a track record of 14 years and 2 months and has outperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in March 2010, providing investors with an annualised return of 5.2% compared with the benchmark's return of 3.54% over the same period.
The Manager has delivered these returns with 2.65% more 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 0.49 since inception. The fund has provided positive monthly returns 81% of the time in rising markets and 18% of the time during periods of market decline, contributing to an up-capture ratio since inception of 185% and a down-capture ratio of 127%.
The Ardea Australian Inflation Linked Bond Fund returned -1.79% in April, an outperformance of +0.19% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which fell by -1.98%. Over the past 12 months, the fund's best monthly return was +4.5% compared with the benchmark's best return of +3.01%, and its worst monthly return was -2.33% 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 | -0.71 | -0.74 | 1.29 | -1.79 | NA | NA | NA | NA | NA | NA | NA | NA | -1.96 |
| 2023 | 4.87 | -2.38 | 4.33 | 0.20 | -0.67 | -2.33 | 0.99 | 0.80 | -2.18 | -1.12 | 2.54 | 4.50 | 9.55 |
| 2022 | -1.18 | -0.71 | -4.35 | -0.14 | -2.01 | -0.58 | 4.42 | -2.93 | -3.41 | 4.87 | 2.74 | -2.97 | -6.54 |
| 2021 | -1.11 | -4.35 | 1.56 | 1.68 | 0.85 | 0.54 | 2.24 | -0.45 | -2.95 | -2.54 | 3.59 | 2.37 | 1.09 |
| 2020 | 3.88 | -0.28 | -7.48 | 0.09 | 2.47 | 1.78 | 3.37 | -0.73 | 1.24 | 0.25 | 1.01 | 1.24 | 6.55 |
| 2019 | 1.11 | 0.52 | 1.88 | 0.68 | 3.35 | -0.06 | 1.92 | 0.84 | 0.05 | -0.32 | 1.92 | -2.41 | 9.78 |
| 2018 | -0.02 | -0.09 | 1.18 | -0.37 | 0.69 | 1.09 | -0.25 | 0.03 | -0.40 | 0.93 | -0.46 | 0.97 | 3.33 |
| 2017 | 0.67 | -0.08 | 0.93 | 1.13 | 1.10 | -1.44 | -0.11 | 0.24 | -0.85 | 1.25 | 1.67 | -0.78 | 3.75 |
| 2016 | 0.17 | 0.18 | 0.39 | -1.53 | 1.78 | 0.75 | 2.66 | -0.38 | -1.01 | -0.24 | -2.25 | 0.72 | 1.14 |
| 2015 | 2.76 | 2.32 | 1.35 | -2.30 | -1.38 | -2.21 | 1.56 | 1.18 | -0.51 | 0.15 | -0.83 | 0.02 | 1.97 |
| 2014 | 0.55 | 0.96 | -0.07 | 1.24 | 3.37 | 1.64 | -0.07 | 1.87 | -1.30 | 0.56 | 2.62 | 2.12 | 14.25 |
| 2013 | -0.54 | 2.35 | -0.37 | 2.20 | -1.69 | -3.50 | 1.03 | -1.64 | 0.53 | 0.22 | -0.49 | 2.15 | 0.08 |
| 2012 | 0.93 | 0.25 | -0.12 | 0.94 | 6.71 | -1.86 | 1.94 | -0.42 | 1.87 | 0.93 | -0.43 | -0.87 | 10.06 |
| 2011 | 1.01 | 1.48 | 0.52 | 1.91 | 1.41 | 0.00 | 3.58 | 1.97 | 1.06 | -2.06 | 5.01 | 2.39 | 19.69 |
| 2010 | NA | NA | -0.45 | 0.66 | 0.27 | 1.67 | -1.04 | 2.35 | 1.36 | -0.59 | -0.30 | -0.15 | 3.79 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has risen by +0.36% compared with the benchmark which has fallen -0.73%, for a difference of +1.09%. Since inception in March 2010, the fund has returned +5.2% per annum, a difference of +1.66% relative to the benchmark which has returned +3.54% 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 $205. The same amount invested in the benchmark over the same period would have become $163.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 6.8% vs the index's 5.64%. The annualised volatility of the fund's returns since inception in March 2010 is 6.66% vs the index's 4.01%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 0.27 for performance over the most recent 48 months to a low of -0.22 over the latest 12 months, and is 0.49 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since March 2010 is 0.38.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in March 2010 in the months where the market was positive, the fund has provided positive returns 81% of the time, contributing to an up-capture ratio for returns since inception of 184.9%. Over all other periods, the fund's up-capture ratio has ranged from a high of 204.62% over the most recent 48 months to a low of 114.25% over the latest 12 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in March 2010 in the months where the market was negative, the fund has provided positive returns 18% of the time, contributing to a down-capture ratio for returns since inception of 126.79%. Over all other periods, the fund's down-capture ratio has ranged from a high of 123.27% over the most recent 24 months to a low of 100.2% over the latest 12 months.
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 0.25 for performance over the most recent 48 months to a low of -0.83 over the latest 12 months, and is 0.66 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sortino for performance since March 2010 is 0.45.
Drawdown
Over the past 12 months, the fund's largest drawdown was -3.83% vs the index's -4.04%, and since inception in March 2010 the fund's largest drawdown was -10.75% 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 Australian Inflation Linked Bond Fund ranked it in the first quintile for Total Return over 3, 5 & 7 years, and in the second quintile for Sharpe over 7 years, while over 3 & 5 years the fund ranked in the second quintile for Sharpe and Sortino.
Over the past 12 months, the fund has risen by +0.36% compared with the peer group which has returned an average of +4.38%, for a difference of -4.02%.
The fund's returns over the past 12 months have been achieved with a volatility of 6.8% vs the peer group's average volatility of 3.13%. The annualised volatility of the fund's returns since inception in March 2010 is 6.66% vs the peer group's 2.78%. Over all other periods, the fund's returns have been more volatile than the peer group.