Summary

The Risk Parity + program is a global systematic multi-asset class investment strategy that seeks to distribute risk evenly among the instruments within three classes: government bonds, equities, and commodities. The instruments within these asset classes have different levels of risk with government bonds tending to be the least volatile while commodities are often the most volatile. Unlike GBD's other strategies, the risk parity program is a long-only strategy. The program incorporates forecasting errors into its learning process and makes adjustments in the portfolio to adapt to ongoing changes in the relative volatility and correlations of different markets. The Risk Parity program targets an annualized volatility of 15%.