Risk parity outperforms 60/40 portfolios, says Aquila

Par for the course

Risk parity strategy seeks balance

Ibn Khaldun, the 14th-century historian and one of the leading jurists of his day, once observed that in the world of existence or in science, “it is from the relations existing among data that one finds out the unknown from the known”. However, “things of the future”, he cautioned, “belong to the supernatural and cannot be known”.

Things may have moved on since the days of Khaldun – advances in quantitative analysis have transformed the way we see and understand the world – but he was fundamenta