Investing in the equity markets comes with a risk. Thus, it is quite natural that you as an investor, require higher returns compared to investments in the historically more safe bonds or bank deposits.
What is also natural is that you should expect professional asset managers to create better returns than you would do on your own – and that you choose the manager which you believe will create the best possible return for you, given your level of risk tolerance.
By law, we are demanded to inform that past returns are no indication of future returns. An opinion that we do however share. We sincerely believe that returns over periods of one, three or twelve months show nothing of the abilities of a portfolio manager. It requires many years of returns to truly evaluate the portfolio manager’s capabilities.
Despite this, investment professionals are often emphasizing their short term ability to beat a given market. A consequence of this approach is benchmark-tracking – the composition of a portfolio which largely resembles the market index it is compared to.
We do not wish to do so. In our opinion, there is no correlation between the quality of a given company and whether the company is included in a given index.
This also means that the portfolios in BLS Invest Danish and Global Equities deviate remarkably from the comparable equity indices. What this also means is that the returns of the funds can be expected to have strong deviations from the general markets – both positively and negatively.
Some investment professionals on the other hand choose to invest in aggressive portfolios, consisting of companies they believe to be far undervalued or where there is hope of large growth. This might result in higher returns – but most certainly also comes with taking larger risks. We do not want this, among other things due to the fact that the portfolio managers at BLS Capital themselves are fully invested in BLS Invest with all their investable funds.
To show the most transparent returns, we are reporting in adherence to the Global Investment Performance Standards (GIPS), which are voluntary standards based on the fundamental principles of full disclosure and fair representation of investment performance results.