Ardea hits $4 billion FUM with measured growth and strong performance

Asset manager marks five years of operation with major milestone

Tamar Hamlyn

Specialist fixed income manager, Ardea Investment Management, has recorded total funds under management exceeding $4 billion as it celebrates five years of investment performance in the Australian fixed income market as at 31 May 2014.

With a focus on delivering controlled returns, Ardea offers a range of products to institutional investors, including customised mandates, a traditional benchmark-focused unit trust and an objectives-based inflation-plus fund which is also available to retail investors.

Co-founder and principal, Tamar Hamlyn, said the firm predicts significant increases on the current rate of inflation over most investment horizons, with concerns for long-term inflation given the international adoption of quantitative easing and the potential for reprioritising of inflation at a global policy level.

“Inflation over a long-term time frame would be extremely damaging for investors. However, the current subdued demand for inflation protection following the GFC, together with increased issuance of inflation linked bonds by Commonwealth and State governments, has created an opportunity to obtain inflation protection at extremely cheap levels relative to history,” he said.

The firm’s sound investment philosophy and consistent approach to risk-controlled investing has led to measured and consistent returns since inception of the business in 2009.

“Ardea was formed on a strategy which sees a longer-term approach to investments and one whereby portfolio diversification is critical to achieving sustainable investor returns.

“As a boutique, we always seek to deliver better value for clients and are very proud of the business and its performance over the past five years,” he said.

Mr Hamlyn, along with Ardea co-founders Ben Alexander, Andrew Bartlett and Stephen Clout, have also expanded its resourcing capability in response to growth in the firm’s investor base with the addition of portfolio analyst, Cameron Shaw. Prior to joining Ardea, Mr Shaw was head of performance and risk analytics at UK-based asset manager Ashmore, and was previously head of investment analytics at Challenger.

The Ardea Australian Inflation Linked Bond Fund has returned 9.76% p.a. over three years to 31 May 2014. Over the same period the UBS Government Inflation Index returned 7.96% p.a.