Ardea moves to offer inflation protection
Specialist inflation linked bond (ILB) manager Ardea Investment Management has launched a new product into the market - the Ardea Wholesale Inflation Plus Fund.
Ardea is the investment manager for the fund, and says it is aimed at investors seeking a stable, defensive return over and above inflation.
It claimed the new product had been introduced at a time when professional investors are speculating inflation is likely to rise in both global and local economies over the next few years, and potentially remain high, even over longer investment horizons.
According to Ardea, the main causes for persistently higher inflation in Australia are our close integration with rapidly industrialising Asia, high global commodity prices - not just for mining, but for food and farming land as well - and the lasting inflationary legacy of policy decisions currently being made in the US and Europe.
Ardea principal Tamar Hamlyn said he believed Australia was unlikely to escape unscathed from the ripples caused by foreign leaders' efforts to generate growth at any cost - including by inflationary means.
The new fund is operated by Fidante Partners Limited (as responsible entity), and has been designed to provide direct protection against inflation through investing in Commonwealth and State Government ILBs.
The bonds provide a coupon and principal which is directly indexed to the Consumer Price Index as published by the Australian Bureau of Statistics, ensuring investments of the fund are not eroded by a rise in inflation.
The minimum initial investment in the Ardea Wholesale Inflation Plus Fund is $10,000, or $1,000 when a regular savings plan is established.
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