Is Risk Parity Right for Your Portfolio?

February 06, 2013 | Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

Driven by volatile equity markets, falling interest rates, and heightened aversion to portfolio losses, interest in risk parity has skyrocketed over the last three years. Unfortunately, the risk parity investment thesis is not always understood by investment committees and trustees, which can contribute to sub-optimal portfolio decisions. In the following newsletter, we address the salient points of risk parity to help educate investors so they can determine if it is an appropriate allocation for their portfolios.

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Greg Leonberger, FSA, EA, MAAA, FCA
Director of Research, Managing Partner

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The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

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