Within the portfolio we have added the Ardea Real Outcome Fund. The purchase was funded by a combination of reducing cash and the existing holdings being the Janus Henderson Tactical Income Fund and the Macquarie Income Opportunities Fund, both funds primarily exposed to high grade floating rate credit.
The attraction of the Ardea Real Outcome Fund is that it:
- Prioritises capital preservation
- aims to outperform both cash and inflation thus maintaining real purchasing power
- does not rely on the direction of either interest rates or credit spreads to generate returns, as it employs a pure relative value approach aiming to exploit mispricings between closely related securities; and finally
- has historically exhibited low correlation to equities as the portfolio specifically includes ‘risk-off’ strategies designed to profit in periods of extreme adverse market movement
- the strategy is implemented by a very experienced team via a well-established, repeatable process. The six portfolio managers have an average of 22 years’ experience and include 3 founding members of the firm.
In the current environment, we believe the Ardea Real Outcome Fund will be an excellent complement to the existing allocations.
If you have any questions regarding any parts of your portfolio, please do not hesitate to contact your adviser as we are always happy to help.
WARNINGS AND DISCLOSURES: This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.
EP Financial Services Pty Ltd
ABN 52 130 772 495 AFSL 325 252 (“ELSTON”)
GPO Box 2220
Brisbane Q 4001