Aquila Capital ups risk with new Alt Ucits launch

Alternative investment specialist Aquila Capital has added a new fund to its risk-parity series with increased market volatility for investors seeking higher returns.

The Luxembourg-domiciled AC Risk Parity 17 fund will have a 17% volatility target and will follow the strategy used for the existing top performing Alternative Ucits market neutral funds AC Risk Parity 12 and AC Risk Parity 7 funds.

Both funds invest in multiple asset classes with 12% and 7% volatility levels, respectively.

‘We’ve noticed in the last few months a growing desire amongst investors for products with higher volatility and as such higher returns. With the launch of the AC Risk Parity 17 fund, we are meeting this demand,’ said Roman Rossenbroich, co-founder and CEO of Aquila Capital.

Risk-parity funds are known as one way to diversify risk through off-benchmark allocation towards asset classes. The Hamburg-based’s funds currently invest in equities, bonds, commodities and short-dated bonds.

Lead by senior manager Harold Heuschmidt, the risk parity fund series became Ucits-compliant in 2008 having previously been solely available as offshore funds.

The company, known for its quant-driven funds, hired Armin Gudat from AXA Rosenberg in April this year to boost the risk-parity team that oversees a total of €1.3 billion in assets.

The AC- Risk Parity 7 fund returned 14% over the last three years to the end of June. The AC-Risk Parity 12 fund returned 28% in the same period.