Risk parity outperforms 60/40 portfolios, says Aquila

A risk parity approach to investing has outperformed the traditional 60%/40% equity/bonds portfolio since 2004, delivering positive performance in each calendar year

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

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