Danish fund boutique Othania is celebrating the five-year anniversary of Othania Balanceret Makro, its all-in-one fund blending equity, bond, and alternatives exposure through Exchange Traded Funds (ETFs). As a balanced fund that incorporates liquid alternatives, Othania Balanceret Makro has delivered an annualized return of 6.5 percent over five years, with an annualized standard deviation of 8.7 percent.
“Time flies by, already five years since we launched our All-In-One fund, Othania Balanceret Makro,” says founder and CIO Vincent Dilling-Larsen, who co-founded Othania with his younger brother. “It has been five intense years. We have navigated a pandemic, inflation, war, and global uncertainty. We have made both right and wrong decisions and learned from them all. One thing is certain: markets will always be unpredictable, which makes our strategy more relevant than ever.” His brother, Christian Mørup-Larsen, adds: “It has been five good years, and I look forward to many more.”
“It has been five intense years. We have navigated a pandemic, inflation, war, and global uncertainty. One thing is certain: markets will always be unpredictable, which makes our strategy more relevant than ever.”
Vincent Dilling-Larsen, CIO at Othania.
Launched on September 1, 2020, Othania Balanceret Makro has achieved a cumulative net return of 37 percent, compared with an average 22.6 percent for peer balanced funds offered by Danish banks and independent asset managers. “This has been achieved with lower risk, measured both in terms of volatility and drawdowns, meaning that the fund’s risk-adjusted return is also among the top in its category,” notes Dilling-Larsen.
The fund was launched with a clear objective: to provide investors with better absolute and risk-adjusted returns using data-driven insights from its Tiger model, which analyzes equity market risk across multiple variables and informs active risk management decisions. “Othania Balanceret Makro A/S is our all-in-one solution: a single fund code that includes equities, bonds, liquid alternatives, and dynamic allocation,” explains Dilling-Larsen.
“Othania Balanceret Makro A/S is our all-in-one solution: a single fund code that includes equities, bonds, liquid alternatives, and dynamic allocation.”
Vincent Dilling-Larsen, CIO at Othania.
The all-in-one fund invests in factor-based equity ETFs, broad bond ETFs, and liquid alternatives such as precious metals, commodities, and currencies, all within an ETF structure. “When we launched the fund, we focused on two central issues with traditional balanced funds: they have a fixed allocation between equities and bonds, and they rarely include anything beyond traditional assets,” says Dilling-Larsen. “This limits flexibility and protection, especially during periods when both equities and bonds fall, as we saw in 2022.”
Having passed the five-year milestone, the team behind Othania is looking ahead to the next five years while maintaining the same goal: “to deliver solid, long-term returns with greater stability,” says Dilling-Larsen. “We look forward to continuing this journey, together with our investors.”
