Natixis AM launches risk parity fund
Natixis Asset Management has launched Global Risk Parity, a multi-asset fund aimed at diversification in a risk balanced structure.
The Luxembourg domiciled Sicav will be able to invest in a broad universe of assets in order to “capture market rallies”, while also using a firm underlying risk balancing strategy to mitigate market falls.
As Natixis explained, the new fund will be able to purchase assets such as bonds, equities, commodities, real estate and volatility instruments, among others. However, it added that the fund will mainly use highly liquid assets such as ETFs and futures.
“The risk parity approach aims to achieve a more consistent performance and a better risk/reward ratio than a traditional balanced allocation, in which equities represent a much larger share of overall risk than their relative weight in the portfolio,” Natixis said.
The fund will be managed by specialists Michael Aflalo and Pierre Radot who will apply a top down approach.
The Ucits structured fund has been registered for sale in the UK, Germany, France, the Netherlands, Italy and Spain and is euro denominated with a minimum investment threshold is €100.