Boutique investment manager Ardea Investment Management has launched an inflation-linked bond fund targeted to small wholesale investors.
The Ardea Australian Inflation-Linked Bond Fund will be benchmarked against the UBS Government Inflation Index.
The fund has opened with $50 million in soft commitment and currently has $15 million in the fund from two clients.
"The bond was developed following demand from consultants," Ardea co-founder Ben Alexander said.
"Consultants are recommending inflation-linked bonds not just to their large defined benefit fund clients but to smaller defined contribution funds as well."
The boutique investment firm has already garnered half a billion dollars of funds under management on the back of investor demand for inflation-linked bonds.
"Our existing clients have invested in segregated mandates. We wanted to offer a pooled fund for smaller wholesale investors," he said.
The firm also has plans to extend the fund to the retail market.
"We have finalised a prospectus for the fund. We will be looking at offering the fund to retail investors," Alexander said.
Ardea is backed by Challenger Financial Services.
