- Advertisement -
- Advertisement -

Othania Launches New Fund with ESG Focus

- Advertisement -

Stockholm (HedgeNordic) – Danish asset manager Othania launches a UCITS-compliant fund that uses the same systematic model employed by their alternative investment fund Othania Invest A/S to allocate capital either into equity or bond exchange-traded funds (ETFs) on a monthly basis. The new vehicle called Othania Ethical Wealth Growth will invest in ETFs that have an environmental, social and governance (ESG) focus.

Both investment vehicles rely on a proprietary investment model called TIGER, which evaluates the risk of being exposed to equity markets for the coming month and decides on the full allocation of capital either into equities or bonds via ETFs. If the model indicates low or acceptable levels of risk in equity markets for the next month, fund assets are invested in exchange-traded funds offering exposure to equity markets. In case the model identifies higher-than-normal risk levels, the assets are allocated to ETFs offering broad-based bond market exposure.

In contrast to Othania Invest, the recently-launched UCITS fund allocates more than half of managed assets to environmental, social and governance (ESG) screened ETFs. ESG screened ETFs typically exclude some sectors including tobacco, thermal coal, nuclear weapons, civilian firearms, oil sands, among others. Vincent and Christian Steen Larsen (pictured), the duo managing the two funds, plan to allocate the entire pool of assets managed by Othania Ethical Wealth Growth into ESG screened ETFs when liquidly levels in this young and expanding group of ETFs reach an optimal point.

“Since launching Othania Invest we have seen the TIGER model being a top performer and knowing from our extensive backtests that the model works globally, we decided to launch the new fund with a global investment mandate and ESG profile. The ESG focus combined with the global mandate has been of high interest from potential investors,” Vincent Larsen tells HedgeNordic.

“We decided to launch in the fund in a UCITS format because we wanted to give private investors the opportunity to access a combination of absolute returns, capital preservation, and socially responsible investments in one product. We believe this is a unique offering within the hedge fund market, a product that combines absolute tactical allocation and socially responsible investing.”


Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com


Most Popular This Week

Request for Proposal

- Advertisement -

Latest Articles

Round Table: ETFs & Asset Management

Stockholm (HedgeNordic) – At a round table discussion that took place in Stockholm on October 17, asset managers and ETF providers discussed and answered...

Nordic Managers Win EuroHedge Nominations

Stockholm (HedgeNordic) – With Intelligence has released the first round of nominations for the EuroHedge Awards 2022, with the list featuring seven Nordic hedge...

Expected 75 Point Hike in Riksbank Rate

Stockholm (HedgeNordic) – Sweden’s Riksbank raised the key interest rate by an expected 75 basis points to 2.5 percent, the highest level since 2008....

The Age of Macro is Back

Stockholm (HedgeNordic) – In recent years, fixed-income macro managers such as Carlsson Norén have struggled to deliver attractive absolute returns in a low-volatility environment...

Man AHL Launches its First Systematic Article 9 Fund

Stockholm (HedgeNordic) – Man Group’s quantitative investment arm and engine, Man AHL, has launched the asset manager’s first systematic Article 9 fund. Relying on...

Corporate Bonds are Very Attractive Finds Atlant Fonder

Stockholm (HedgeNordic) – This year’s broad sell-off in the bond market due to aggressive monetary tightening in the fight against inflation may have investors...