Aquila Capital launches risk parity fund targeting 17% volatility

volcanoHamburg-based alternative fund manager Aquila Capital has launched a risk parity fund that targets volatility of 17%, with a high potential return. The firm already has a risk parity fund that aims for a volatility of 7% that has returned 4.21%so far this year, and a fund targeting 12% volatility that has returned 8.09% so far in 2012. Aquila's risk parity funds aim to achieve an equal balancing of risk within their portfolio by employing a very large weighting to low-risk assets, namely government bonds and interest rate futures, so that the risk contribution of these assets is the same as the risk contribution of more volatile equities and commodities.

When interviewed for Funds Europe in May, Harold Heuschmidt, head manager of Aquila's risk parity funds, explained that to achieve a high enough weighting to low-risk assets, the funds use considerable amounts of leverage. The Risk Parity 17 Fund is aimed at sophisticated investors with a minimum investment of €100,000. ©2012 Funds Europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.