This strategy is offered by Newton Investment Management North America LLC (‘NIMNA’) in the United States. NIMNA is part of the Newton Investment Management Group.

Strategy Overview

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 favorable 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.

Investment Team

Our investment team of research analysts and portfolio managers work together across regions and sectors, helping to ensure that our investment process is highly flexible.

A team of 18 investment professionals.

20
years’ average investment experience
12
years’ average time at Newton

Strategy Profile

Objective

Risk Parity DRQ seeks maximum total return at a specific targeted level of risk. The strategy aims to deliver a consistent amount of risk through time and adjusts exposures as market risk varies and as the relationship among strategy constituents changes in response to evolving economic conditions. The strategy goes beyond traditional measures of correlation with the goal of ensuring significant exposure to assets that have tended to bolster the strategy during historical stress periods.

Strategy inception

May 2, 2016

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.