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Matthias Knab, Opalesque:

Reflecting strong institutional demand for comprehensive and robust performance benchmarks for risk parity products, HFR has announced the launch of the HFR Risk Parity Indices, the first and only family of Risk Parity Indices available to investors and managers. HFR is the established global leader in the indexation, analysis and research of the global hedge fund industry.

Risk parity is a portfolio allocation strategy based on targeting risk levels across various components of an investment portfolio. The risk parity approach allows investors to target specific levels of risk and to divide that risk equally across their portfolio in order to achieve optimal diversification. The primary objective of risk parity investing is to earn the same level of performance as traditional asset allocation strategies, but with less volatility and risk, and to realize stronger performance with an equal amount of risk and volatility. Risk parity products continue to gain popularity with both US and international financial institutions.

The family of six HFR Risk Parity Indices incorporates two important specialized features integral to benchmarking risk parity products: volatility targets and institutional asset levels. Each risk parity product carries a specific target of annualized volatility which reflects the amount of risk taken across major asset classes.

The HFR Risk Parity Indices......................

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