Risk Parity


Investors typically seek compensation for taking on risk; as a result, all asset classes that are perceived to bear risk must offer an associated risk premium.  Risk Parity is a methodology that aims to balance risk exposures in a given portfolio in an optimal fashion, so as to avoid risk concentration – be it across asset classes, or within asset class.  The risk parity approach may be applied in a multi-asset class portfolio that has exposure to equities, bonds, commodities and other inflation-hedging instruments, as well as within certain stand-alone asset classes such as Diversified Risk Equity and Diversified Risk Commodities.

  • Multi-Asset:
    • Risk Parity Multi-Asset
    • Risk Parity Multi-Asset Plus
  • Single Asset:
    • Diversified Risk Emerging Market Equity
    • Diversified Risk Global Equity
    • Diversified Risk International Equity
    • Diversified Risk US Equity
    • Diversified Risk Commodities

For more information on this strategy, please click here