Ardea Investment Management: Fixed Income Investment Managers

About Ardea IM

Established in 2008, Ardea Investment Management (Ardea IM) is a specialist ‘relative value’ fixed income investment manager. Ardea IM's differentiated pure ‘relative value’ investing approach offers a compelling alternative to conventional fixed-income investments because it is independent of the prevailing interest rate environment and how bond markets are performing.

Ardea IM believes the pure ‘relative value’ opportunity set is a proven reliable source of returns because it is driven by structural market inefficiencies that create new ‘relative value’ mispricing opportunities to profit from. Ardea IM focuses on delivering consistent volatility-controlled returns in order to strictly limit performance volatility and prioritise capital preservation, irrespective of the market environment.

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Approach

Ardea IM's focus is on volatility-controlled alpha delivered though relative value income strategies in the fixed income space. Portfolios are constructed to take advantage of particular inefficiencies through innovative ideas which maintain market beta but add alpha. These inefficiencies result from:

Supply and demand factors driven by market participation
Fundamental inefficiencies arising from market valuations which are inconsistent with economic fundamentals
Technical inefficiencies where assets or instruments with the same or similar risk characteristics are not priced consistently

Ardea IM has a proprietary set of risk management systems and processes that allow detailed assessment of the relative risks and value of these various assets, while a qualitative overlay ensures that trades bring the intended risk and return to the portfolio.

To find out more, visit Ardea IM.

Our Funds

ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (XARO)

Fixed Income

The listed Fund targets a stable return in excess of inflation over the medium term.

Ardea Diversified Bond Fund

Fixed Income

The Fund aims to efficiently deliver the risk and return characteristics of the benchmark index while also targeting excess returns above the Fund’s benchmark.

Ardea Real Outcome Fund

Fixed Income

The Fund targets a stable return in excess of inflation over the medium term.

Ardea Australian Inflation Linked Bond Fund

Fixed Income

The Fund invests in securities within the Bloomberg AusBond Inflation Government 0+ years Index, plus government and semi-government bonds in Australia to achieve an inflation-linked return.

ESG

Ardea IM evaluates and integrates Sustainability Risks and other relevant ESG factors at multiple stages throughout the investment process. This is considered an important element in contributing towards long-term investment returns and an effective risk-mitigation technique. Ardea IM believes its ESG-related research capabilities enables the identification of ESG risks and opportunities of most relevance to the strategy. Beyond mitigating ESG risks, Ardea IM promotes environmental characteristics via a number of initiatives including; a policy which preferences green bonds over “brown bonds”, engagement activities which promote the development of a green and impact bond market, and raising awareness through the publication and promotion of academically published research which measures the climate transition risks the global government bond markets are exposed to. Ardea IM has three pillars which form the foundation of our ESG policy: research, integration and engagement.

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ESG Integrated with Investment Process

Ardea IM evaluates and integrates Sustainability Risks and other relevant ESG factors throughout the investment process.

ESG-Related Research Capabilities

ESG-related research capabilities enables the identification of ESG risks and opportunities of most relevance to the strategy.

ESG Policy Foundations

Three pillars form the foundation of Ardea IM's ESG policy: research, integration, and engagement.

Resources

Insights

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Troubled Times Ahead?

The saying that all good things must come to an end is a bittersweet reflection of reality. Sadly, too many of us fail to appreciate those good times, often focusing on what could or might go wrong. Perhaps this is understandable given the potential for higher interest rates to stifle economic growth and an increasingly complex geopolitical environment.

Finding Alpha Podcast | Amplifying the diversification benefits of Fixed Income

Given the uncertainty created by a looming US election, interest rate expectations constantly readjusting and geopolitical risks, having additional sources of diversification in portfolios can provide protection during periods when volatility spikes and markets are stressed. In this episode, Gopi Karunakaran shares how a pure relative value investing approach can play a defensive role in portfolios without relying on duration and credit.

Livewire ‘The Pitch’ with Gopi Karunakaran

This month Gopi Karunakaran caught up with Hans Lee from Livewire Markets for a deep dive into the world of Relative Value investing.

Team

Ardea Investment Management's high quality team is made up of individuals with varied backgrounds, capturing the balance, breadth and resources of a large investment house while retaining the investment focus and agility of a boutique. To view the team, please visit ardea.com.au.