RESOLVE GLOBAL RISK PARITY

“Don’t confuse symmetry with balance.”
– Tom Robbins

The ReSolve Global Risk Parity Strategy is constructed from a diverse universe of global asset classes so that the portfolio contains investments which can thrive in any economic environment. The portfolio is formed by ensuring that each asset contributes the same amount of risk to the portfolio. As asset relationships change over time, the Strategy responds with subtle shifts to maintain maximum diversification.

PERFORMANCE AND INFORMATION – US&INTERNATIONAL MANDATES

US & InternationalInvestment VehicleInception Date
ReSolve Global Risk Parity: 12% Volatility (USD)Separately Managed AccountFeb 2016
ReSolve Global Risk Parity: 6% Volatility (USD)Separately Managed AccountNov 2015

Strategy Highlights

The ReSolve Global Risk Parity Strategy is constructed from a diverse universe of global asset classes so that the portfolio contains investments which can thrive in any economic environment.  The portfolio is formed by ensuring that each asset contributes the same amount of risk to the portfolio. As asset relationships change over time, the Strategy responds with subtle shifts to maintain maximum diversification.

Risk Parity (RP) effectively bridges the gap between two foundational concepts in modern finance: efficient markets and Modern Portfolio Theory (MPT). That’s because a Risk Parity portfolio is optimal under MPT when investors have priced markets efficiently, so that major asset classes are expected to deliver returns in proportion to the amount of risk each contributes to the overall portfolio. Simply stated: for believers in efficient markets, RP maximizes the benefit of diversification.

One challenge with traditional RP implementations is that they assume markets are efficient at all times. The Enhanced Risk Parity strategy takes a less extreme view of efficiency, and operates under the slightly relaxed assumption that markets are efficient most of the time. To address this modified view, the Strategy regularly applies a proprietary statistical process to determine the likelihood that an asset has negative prospects. If so, exposure to the asset is scaled back proportionally.

ReSolve Risk Parity – 2016 Year End Review

ReSolve Risk Parity – Highlights

Terms & Conditions

The following document may only be accessed by persons who satisfy any of the following criteria:

(i) a regulated financial entity (this may include banks, stockbrokers, securities houses, investment managers, insurance companies, collective investment schemes, pension funds and financial intermediaries) which is regulated by its local country regulator;

(ii) an institutional investor or investment professional whose primary function is to operate in the financial markets involving regulated financial activity as defined by its local country regulator;

(iii) you are considered to be an accredited investor as defined by its local country regulator,

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ReSolve Risk Parity – Solution Brief

Who is this strategy for?

The Strategy is consistent with the view that markets are mostly efficient, interrupted by periodic episodes of madness. By consistently harvesting the only ‘free lunch’ in investing – diversification – The ReSolve Global Risk Parity Strategy is designed to provide steady returns in most market environments, with minimal trading and turnover.