Portfolio Update – Ardea Real Outcome Fund

By September 28, 2020Portfolio

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.


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Prepared by:
EP Financial Services Pty Ltd
ABN 52 130 772 495 AFSL 325 252 (“ELSTON”)
GPO Box 2220
Brisbane Q 4001