Absolute return: a temporary refuge for Jaap Bouma – part 1 of 2

In this video interview, Jaap Bouma of Dutch wealth manager Optimix explains why he has finally decided to replace part of his fixed income portfolio with liquid alternatives. But he also admits he is ready to ditch this allocation again.

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PA Europe

Until recently Optimix, which follows a top-down investment process, had been reluctant to invest in absolute return because “we wanted to keep it simple,” says Bouma.

“Until a year ago, our portfolios were quite simple: just equities and bonds. But at current yield levels we need to have alternatives,” explains Bouma. “So we went on to search for low-beta alternatives with low correlation to equities.”

However, Bouma admits that the main reason Optimix made a move into absolute return is that it felt forced to because of the lack of perspective in fixed income on the short and medium term. 

But the admits: “We are ready to return to bonds when yields go up. But I expect it will take a few years before we get to that point.”

In part two of the interview, Bouma tells which long/short funds he has bought into so far. He also reveals why liquidity is so important to him.  

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