Risk Parity

The Risk Parity strategy is a globally diversified strategy emphasizing the allocation of risk exposure as opposed to the allocation of capital. The strategy seeks to balance the sources of portfolio risk across major asset classes, including global equities, global credit, sovereign debt and commodities. The strategy is designed with the flexibility to scale volatility targets to meet investors' specific risk/return objectives.

Objective

The Risk Parity strategy seeks maximum total return at a specific targeted level of risk. The strategy aims to deliver a consistent amount of risk through time and adjusts exposures as market risk varies and as the relationship among strategy constituents changes in response to changing economic conditions.

Approach

We seek maximum diversification within and across, rather than just across, asset classes. We believe our approach offers more exposure to truly idiosyncratic markets with less exposure to common, less diversifying markets than our peers.