Bringing you live news and features since 2006 

AQR Capital Management launches Risk Parity mutual funds


AQR Capital Management has introduced two mutual funds, AQR Risk Parity II MV Fund and AQR Risk Parity II HV Fund, which will be distributed through financial advisers only.

AQR’s objective with these new mutual funds is to produce attractive risk-adjusted returns while diversifying investors’ exposure to equity risk.

The potential investment benefit of risk-parity funds is that they may provide financial advisers with additional investment choices designed to further diversify and help to create more efficient portfolios.

“We want to broaden investors’ menus by offering a variety of risk exposures that match their risk profile,” says David G Kabiller, co-founding partner and head of client strategies at AQR. “These funds can help advisers better target their particular risk preference: higher risk and higher potential returns or moderate risk and more moderate returns.”

Risk parity funds seek to produce attractive risk-adjusted returns by investing in a globally diversified portfolio of equities, fixed income and commodities. Broadly defined, risk-parity funds balance risks rather than asset classes. A typical risk-parity portfolio begins with less exposure to equities relative to traditional portfolios and invests more in other asset classes. As a result, its risk budget is not concentrated in equities, but spread more evenly across other assets.

In addition, the new funds offer different levels of target volatility to suit the risk preference of different investors. The AQR Risk Parity II MV Fund targets a moderate annualised level of volatility, 10 per cent, while the AQR Risk Parity II HV Fund aims for a higher target annualized level of volatility, 15 per cent.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by