Over the past five years, bond markets have witnessed remarkable transformations, reshaping the investment landscape. From a pandemic to growing global macro-economic pressures, the role of fixed income in portfolio construction remains important. To maximise the benefits of bonds for today’s investor, it is crucial to understand what has driven this market evolution and where to next.

“On the surface, bond markets appear to have calmed considerably, relative to the historic extreme turmoil of 2022. However, beneath the surface, bonds remain highly volatile by historical standards.” – Ardea IM

XARO seeks to strike the right balance, aiming for higher returns¹ than cash² with less risk than many income seeking investments³. The ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (the “Fund”) primarily invests in the Ardea Real Outcome Fund which was launched in July 2012.

This Fund is designed for those seeking:

Founded in 2008, Ardea Investment Management (Ardea IM) are now one of Australia’s largest specialist relative value fixed income investment managers. Our global client base ranges from the larger institutional investors and asset consultants, to a diverse range of wholesale and retail clients.

Ardea IM’s highly differentiated pure relative value (RV) investing approach offers a compelling alternative to conventional fixed income investments because it is independent of the prevailing interest rate environment and broader bond market performance.

1 Refers to the Fund’s historical track record since inception (December 2018).

2 Cash on hand, demand deposits and money deposited with an Australian ADI that is available for immediate withdrawal; Short-term, highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of changes in value including cash management trusts.

3 When compared to Equities (S&P/ASX200 Accumulation), REITs (S&P/ASX200 A-REIT), Ausbond Composite (Australian govt and non-government bonds) and Ausbond Govt (Australian govt bonds).

4 Past performance is not an indicator of future performance. Neither fund performance nor capital is guaranteed.

Important Information

This material has been prepared by Ardea Investment Management Pty Limited (ABN 50 132 902 722 AFSL 329 828) (Ardea IM) the investment manager of the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (XARO) and the Ardea Real Outcome Fund, (Funds).

Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante) is a member of the Challenger Limited group of companies (Challenger Group) and is the responsible entity of the Funds. Other than information which is identified as sourced from Fidante in relation to the Funds, Fidante is not responsible for the information in this material, including any statements of opinion.

It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable to your circumstances. The Funds’ Target Market Determinations and Product Disclosure Statements (PDS) available at www.fidante.com should be considered before making a decision about whether to buy or hold units in the Funds. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

Past performance is not a reliable indicator of future performance.

Any projections are based on assumptions which we believe are reasonable but are subject to change and should not be relied upon.

Ardea IM and Fidante have entered into arrangements in connection with the distribution and administration of financial products to which this material relates. In connection with those arrangements, Ardea IM and Fidante may receive remuneration or other benefits in respect of financial services provided by the parties.

Fidante is not an authorised deposit-taking institution (ADI) for the purpose of the Banking Act 1959 (Cth), and its obligations do not represent deposits or liabilities of an ADI in the Challenger Group (Challenger ADI) and no Challenger ADI provides a guarantee or otherwise provides assurance in respect of the obligations of Fidante. Investments in the Funds are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Accordingly, the performance, the repayment of capital or any particular rate of return on your investments are not guaranteed by any member of the Challenger Group.