Aquila extends risk parity multi-asset fund range
Hamburg-based manager Aquila Capital has extended its €1.2bn risk parity fund range with a new portfolio as allocators increasingly consider volatility of assets, not just their returns, when buying funds.
The AC – Risk Parity 17 complements the Risk Parity 7 and 12 portfolios. Fitting its name, it targets volatility of 17%, not far off the historic average volatility of equities.
But Risk Parity 17 will allocate risk across various asset classes including equities, bonds, commodities and interest rates.
Risk parity strategies allocate cash in such a way that each asset class contributes an equal portion of risk to the total. This can provide significantly different asset allocations than a simplistic, static 60% / 40% split between equities and bonds that some fund buyers have used in the past.
With a minimum commitment of €100,000, Aquila’s fund targets professional investors.
Roman Rosslenbroich, co-founder and CEO of Aquila Capital said: “The fund provides our clients with access to an institutional class fund, built on our established and successful risk parity strategy, which has achieved positive year-on-year risk-adjusted returns since launch.”
Aquila originally launched the fund concept in 2004, and provided it in Ucits format with daily pricing and liquidity from 2008.
It has made risk-adjusted gains each year since inception.