Stockholm (HedgeNordic) – A new fund launched by Danish boutique asset manager Othania is looking to serve as a fixed-income alternative in a portfolio by offering exposure to five different asset classes via highly-liquid exchange-traded products. The new fund, called Wealth Invest Othania Stabil Investering, joins Othania’s ETF-focused range of three alternative investment funds.
Othania Stabil Investering seeks to replace investors’ fixed-income allocation – which has historically helped reduce risk and preserve capital while generating income – and aims to represent a low-risk investment alternative that can perform well in all financial scenarios. The fund will get exposure to five different asset classes via liquid exchange-traded products, with its portfolio equally divided among global equities and real estate, global investment-grade bonds, precious metals, CTA strategies, and long volatility.
“Wealth Invest Othania Stabil Investering is suitable for those investors looking for a stable bond-like brick in their portfolios.”
“At Othania, we are now launching a new investment fund, Wealth Invest Othania Stabil Investering,” announce Vincent Dilling-Larsen and Christian Mørup-Larsen, the brothers who founded Othania Capital in early 2016. “With the current and expected interest rate level, you can no longer count on an attractive positive and stable return from bonds for the next 5-10 years,” the duo continues. “We have worked on this challenge at Othania and we believe that we have the solution with our new fund.”
“By combining the five asset classes, we can create a portfolio that is very similar to a global government bond (as we know it historically) in terms of both return and risk.”
According to CIO Vincent Dilling-Larsen, Wealth Invest Othania Stabil Investering “is suitable for those investors looking for a stable bond-like brick in their portfolios.” He goes on to add that the fund is designed to protect investors when markets are very volatile, but at the same time, to offer investors an expected positive return of 3.5-5 percent per year after fees over the next 10 years. “By combining the five asset classes, we can create a portfolio that is very similar to a global government bond (as we know it historically) in terms of both return and risk,” adds Dilling-Larsen. “As an investor, you can achieve a reasonably stable return with a correspondingly low risk. As an investor, you no longer need to move further out on the risk curve to get a return.”
