By the end of the summer of 2014, our conviction that QE was unavoidable rose substantially and we decided to position the portfolio accordingly. From the fall of 2014 we anticipated QE announcements by positioning for lower yields. Also, we held substantial positions in fixed income asset categories that we expected to profit from the search for yield theme, like Italian and Spanish government bonds, credits and emerging markets bonds. The actual QE announcements by the ECB were fairly in line with our expectations and gave no reason to change our portfolio positioning.
e-fundresearch.com: To what extent does fund size impact the efficiency and effectiveness of your investment strategy?
Hans van Zwol: In our case, fund size is no problem. We operate in relatively liquid markets and make use of almost all instruments available. This means that we, for instance, can easily use futures or swaps in case market liquidity in other instruments is not sufficient to implement desired positions or if the costs of implementation are too high.
e-fundresearch.com: Thank you!