Risk Parity DRQ

This strategy is offered by Newton Investment Management Ltd (‘NIM’). This strategy may be managed by an affiliate of NIM and may apply a research process that differs from that applied by NIM.

The strategy seeks to balance the sources of portfolio risk across major asset classes, including global equities, global credit, sovereign debt and commodities, and aims to capture additional diversification through a proprietary process that adapts the portfolio to be more robust to the conditional correlation of markets during periods of stress.

Risk Parity DRQ seeks out maximum diversification within and across asset classes, enabling the strategy to carry more compensated sources of exposure than a less diversified alternative. Diversification is further enhanced through proprietary measures of conditional correlation designed to identify true diversification. Via this diversification, the strategy seeks to mitigate a portion of downside exposure in difficult markets and enhance upside under favourable conditions.

We believe our strategy differentiators are diversification within asset classes including commodities, consistent delivery of a targeted level of risk, and better awareness of the conditional nature of correlations during stress environments.

Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.