Ardea Australian Inflation Linked Bond Fund

Overview

The Ardea Australian Inflation Linked Bond Fund invests primarily in the securities within the Bloomberg AusBond Government Inflation Index, nominal government and semi-government bonds, inflation derivatives, interest rate derivatives, as well as bank bills and NCDs issued by the four big banks.

The Fund is constructed initially by matching the investment risks inherent in the benchmark and by then overlaying multiple and diversified alpha strategies. The alpha strategies are based around two broad investment areas which include interest rates and arbitrage. Alpha trades are optimised to ensure that trades are appropriately sized based on their perceived level of risk.

Interests in the Ardea Australian Inflation Linked Bond Fund ARSN 141 165 362 are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners). Fidante Partners has appointed Ardea Investment Management Pty Ltd as the investment manager of the Fund. 

Fund objective

To outperform the Bloomberg AusBond Inflation Government 0+ years Index over rolling three-year periods.

Investment approach

The investment approach is fundamentally driven with a focus on accurate measurement and management of risk. Ardea believes that by utilising multiple and diversified alpha sources, active management will add value over the medium term. 

PDS update of information - 1 July 2013

Introduction of the future of financial advice reforms

In April 2010, the Government announced the Future of Financial Advice (FOFA) reforms aimed at improving the quality and access to financial advice for Australian investors. The reforms are mandatory from 1 July 2013. Generally, the FOFA reforms introduce a duty for financial advisers to act in the best interests of their clients and prohibit the payment of conflicted remuneration to advisers and platforms.

We have reviewed our procedures to ensure we comply with the new FOFA requirements and this update is made to ensure you have the correct information about the fees and benefits we pay to platforms and advisers.

Please read the following update together with the relevant fund's Product Disclosure Statement (PDS) and Additional Information booklet (AIB) and relates to the 'Additional explanation of fees and costs' section in the AIB.

Introduction of the Future of Financial Advice Reforms (FOFA)

Update of information

Change in benchmark name 29 September 2014

Due to the acquisition by Bloomberg of the UBS Australian Bond Indexes, the name of the benchmark of the Fund was amended effective 29 September 2014 as follows:

Previous benchmark name
UBSA Government Inflation Index 0+ years

New benchmark name
Bloomberg AusBond Inflation Government 0+ years Index

Please note that there is expected to be no material alteration to the calculation methodology of the benchmark as a result of the acquisition by Bloomberg.

Changes to Goods and Services Tax (GST) from 1 July 2012

This update is to be read together with the Fund's Product Disclosure Statement (PDS) and Additional Information Booklet (AIB) and has been issued to update the PDS and AIB regarding GST changes that commence 1 July 2012.

All fees and costs expressed in the Fund's PDS and AIB are quoted inclusive of any GST and net of reduced input tax credits (RITCs) that are expected to be available to the Fund.

For acquisitions by the Fund before 1 July 2012, the prescribed RITC rate was 75%. Under recent changes to the GST law, acquisitions by the Fund from 1 July 2012 can attract RITCs at a prescribed rate of either 75% or 55 %, depending on the nature of the acquisition. The introduction of a lower RITC rate increases net costs disclosed in the PDS and AIB, which were calculated on the basis of a RITC rate of 75%. Fees stated in the PDS and AIB are rounded to two decimal places.

The information in this update is up-to-date at the time of preparation. However, some information can change from time to time. For updated information about the Fund, please contact your financial adviser, call our Investor Services team on 13 51 53 or refer to this website. We will also send you a copy of the updated information free of charge upon request. If a change is considered materially adverse we will issue a replacement PDS and AIB.