Salient Risk Parity Indices Launch On Bloomberg Terminals New Benchmarks Reflect Growing Marketplace Interest in Risk Parity Strategies
HOUSTON, Sept. 17, 2012 /PRNewswire/ -- Salient Partners L.P. (Salient), a $17 billion asset management firm, announced that the Salient Risk Parity Index and its two complementary indices have been added to the Bloomberg Professional network, which provides real-time financial information to more than 310,000 subscribers worldwide. The three Salient indices are the first benchmarks that enable investment professionals to measure the performance and effectiveness of their risk parity strategies against an industry-standard passive index.
Launched in February of 2012, the base Salient Risk Parity IndexTM (SALIRSKP) has a volatility target of 10%. The complementary indices, Salient Risk Parity V12+ Index (SALIRP12) and Salient Risk Parity V15+ Index (SALIRP15), feature volatility targets of 12% and 15%, respectively. These two enhanced indices incorporate momentum and a greater sensitivity to changing market conditions.
"It's gratifying to have the Salient Risk Parity Indices posted on the Bloomberg terminals, which are among the most useful tools available to financial professionals today," said Lee Partridge, Chief Investment Officer of Salient. "Our indices now provide daily benchmarks for investment managers who employ risk parity strategies."
The Salient Risk Parity Indices express what Salient believes is optimal diversification across the liquid global investment universe. Designed to target different rates of volatility, they seek to capture the performance of equally risk-weighted allocations to four asset classes: global equities, interest rates, credit, and commodities. Assets are selected by Salient's Index Committee, and the three indices are calculated daily and rebalanced monthly.
"We saw a void in the money management arena for industry-standard tools that would allow investment managers to evaluate the effectiveness of their risk parity allocations," said Mr. Partridge. "We designed our indices to provide this type of benchmark, and we are pleased that Bloomberg has added them to their professional network."
The 10% volatility target of the baseline Salient Risk Parity Index is approximately equal to the long-run annual standard deviation of a typical portfolio asset allocation consisting of 60% equities and 40% debt. Salient Risk Parity V12+ Index and Salient Risk Parity V15+ Index are designed to outperform the baseline index over longer time horizons on a risk-adjusted basis.
To view the Salient Risk Parity Indices, please go to www.theriskparityindex.com.
For more information about the Salient Risk Parity Indices, please contact Chris Moon of JCPR at 973-850-7304 or firstname.lastname@example.org.
About Salient Partners L.P.
Salient Partners L.P. is a $17 billion investment management firm based in Houston, Texas. The firm is a recognized innovator in the development, management and delivery of sophisticated, non-traditional investment solutions for both institutional and retail investors. Through its comprehensive investment approach, Salient identifies and develops leading strategies that help eliminate unrewarded risk, reduce investing costs and focus on the fundamental drivers of returns to deliver the full potential of all markets to investors. For more information about Salient and its professionals, visit www.salientpartners.com.
SOURCE Salient Partners L.P.