Salient Partners launches the Salient Risk Parity Index

By Tali David

Minneapolis, Feb. 16 - Salient Partners LP has launched the Salient Risk Parity Index, the company announced in a press release.

The Salient Risk Parity Index seeks to represent the performance of an equally risk-weighted allocation to global equity, interest rate, credit and commodity futures contracts and swaps. One quarter of the index's variance comes from each of the four asset classes, and portfolio weights are rebalanced monthly.

"The Salient Risk Parity Index has been created to fill what we see as a void in the money management arena," chief investment officer Lee Partridge said in the release. "While equity strategists and stock fund managers can gauge their performance against indices such as the Dow Jones industrial average and S&P 500, investment managers who employ risk-parity strategies do not have a similar measurement tool."

The volatility target of the index is 10%, approximately equal to the long-run annual standard deviation of a typical portfolio asset allocation consisting of 60% equities and 40% debt.

Salient is a Houston-based investment management firm.

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