The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:WSJ Wonders if Risk Parity Funds Are Email Routing List Email & Route  Print Print
Monday, February 6, 2012

WSJ Wonders if Risk Parity Funds Are "A Better Mousetrap"

News summary by MFWire's editors

The Wall Street Journal just gave some mixed ink to five mutual fund firms in a niche asset class. In the WSJ's monthly "investing in funds" special report, Veronica Dagher takes a look at a new type of asset allocation mutual funds, risk-party or balanced-risk funds, which amp up their bonds and cash holdings and then use leverage to boost their returns, to compensate for lower stocks and alternatives allocations.

The WSJ cites Morningstar's count of only four such funds: $4-billion Invesco Balanced-Risk Allocation [profile], $427-million AQR Risk Parity [profile], $107-million Managers AMG FQ Global Essentials [profile] and $22-million Putnam Dynamic Risk Allocation [profile]. Morningstar looks past the name of another fund, Diversified Risk Parity, to classify it as "more of a hedge-fund replication strategy."

Morningstar fund analysis associate director Michael Herbst, GMO asset allocation chief Ben Inker, Putnam global asset allocation chief Jeff Knight and AQR principal Michael Mendelson all weighed in for the article. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use