Danish boutique asset manager Othania has assumed management of the UCITS-structured fund ØU Invest Balance KL, which will be rebranded as Othania Stabil UCITS KL on April 25. The fund will adopt Othania’s established All-Weather strategy, currently employed in the firm’s Alternative Investment Fund, Othania Stabil Investering. As a result, Othania will provide investors with the opportunity to access the All-Weather strategy through both an AIF and a UCITS-structured fund.

“From today, Danish investors get access to a UCITS fund running our unique and successful All-Weather investment strategy,” says Vincent Dilling-Larsen, co-founder and CIO at Othania. Launched in April 2022, Othania Stabil Investering’s All-Weather strategy holds an equally weighted exposure across five asset classes: equities, global investment-grade bonds, precious metals, CTA strategies, and long volatility strategies. This multi-asset strategy is designed as a low-risk investment option, aiming to perform well across all financial scenarios. “The basic idea behind our investment strategy is to create a balanced All-Weather portfolio designed to deliver attractive absolute and risk-adjusted returns, regardless of economic conditions,” explains Dilling-Larsen.

“From today, Danish investors get access to a UCITS fund running our unique and successful All-Weather investment strategy.”

Vincent Dilling-Larsen, co-founder and CIO at Othania.

“Instead of trying to predict economic fluctuations, the strategy is built on the understanding that the economy naturally progresses through four distinct phases: growth, recession, inflation, and deflation. In each phase, different asset classes tend to generate returns,” he adds. By combining a variety of asset classes, including stocks, bonds, precious metals, and liquid alternatives, Othania has developed a robust investment approach that is “prepared for all economic scenarios,” according to Dilling-Larsen. “The goal is to provide a stable, long-term solution for investors, where risk is diversified and the potential for returns is preserved across all market environments.”

With Othania assuming management of ØU Invest Balance KL, the fund boutique is launching the UCITS version of its All-Weather strategy. “The primary reason behind the desire to launch a UCITS version of Othania Stabil Investering is that many clients, particularly those in pension schemes, found it difficult or impossible to invest in Othania Stabil, or were restricted to limited allocations,” explains Dilling-Larsen. “Our goal is to unlock access to this broader client base and make the strategy more accessible to investors.”

“The UCITS directive is a bit more restrictive in what we can do. However, after a thorough research process, we concluded that it was possible to achieve similar return and risk profiles across both the UCITS and AIF space.”

Vincent Dilling-Larsen, co-founder and CIO at Othania.

“The UCITS directive is a bit more restrictive in what we can do,” acknowledges Dilling-Larsen. “However, after a thorough research process, we concluded that it was possible to achieve similar return and risk profiles across both the UCITS and AIF space,” he emphasizes. Moving forward, Othania will offer two funds running our All-Weather approach: Othania Stabil Investering and Othania Stabil UCITS.