Ardea Diversified Bond Fund

The Ardea Diversified Bond Fund (the Fund) aims to efficiently deliver the risk and return characteristics of the benchmark index (the ‘beta’ component), while also targeting excess returns (the ‘alpha’ component) above the Fund’s benchmark. The investment approach used is Ardea’s differentiated pure relative value approach.

The benchmark for the Fund is the Bloomberg Ausbond Composite Bond 0+ Year Index. 

You should read the Fund’s Target Market Determination (TMD) and the Fund’s Product Disclosure Statement (PDS) to ensure the key attributes of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs before making a decision about whether to acquire or continue to hold the Fund.

Fund Facts

Suggested minimum investment timeframe

At least two years

Initial investment

$10,000 or $1,000 when a Regular Savings Plan is established.

Investment strategy

Ardea IM is a specialist, relative value focused fixed income manager.
Investment approach

Our approach accesses fixed income return sources beyond the conventional to target consistent alpha and tracking error volatility independent of the level of bond yields, the direction of interest rates and broader market fluctuations.
It 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. Ardea believes this type of mispricing exists because fixed income markets are inefficient.

Investment universe

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.

Lonsec Highly Recommended

Awards and ratings disclaimers

Interests in the Ardea Diversified Bond Fund ARSN 622 519 117 are offered by Fidante Partners Limited (ABN 94 002 835 592 AFSL 234 668) (Fidante). Fidante has appointed Ardea Investment Management Pty Ltd (ABN 50 132 902 722 AFSL 329828) as the investment manager of the Fund.