Aquila Capital enters the next generation of adaptive risk balanced investment products

In response to a changing market environment, Aquila Capital has decided to evolve the investment process of its long-only multi-asset investment strategy by taking into account the latest developments in quantitative finance and artificial intelligence.

To reflect these developments, the AC Risk Parity Fund has been renamed as the AC – Adaptive Diversification Fund (the ‘Fund’). The investment process includes an advanced range of indicators to measure market attractiveness, aiming to deliver stable returns largely independent of market cycles.

The Fund offers a dynamic approach to balancing risk, responding fast to increasingly challenging financial markets. It uses sophisticated quantitative techniques to continuously adjust exposure to a global range of liquid futures markets, investing in equity indices, bonds, interest rates and commodities. It is long-only and adjusts asset weightings according to their attractiveness, amongst others, in terms of ‘carry’ and ‘momentum’ indicators.

The Fund is based on the strategies developed by Aquila Capital’s Systematic Trading Group, which was launched in January 2017 and whose members have more than 30 years’ of combined experience in managing systematic multi-asset managed futures and equity strategies and with assets under management in excess of USD 2.5bn. The team oversees Aquila Capital’s quantitative strategies and includes Urs Schubiger, Fabian Dori and Egon Ruetsche, PhD, who are all Quantitative Strategists and Portfolio Managers. They have previously worked together for several years and share an outstanding track record having managed a highly successful venture in developing and implementing quantitative investment strategies.

Urs Schubiger, Member of the Systematic Trading Group, commented: “The AC – Adaptive Diversification Funds is a leading model for the next generation of dynamic multi-asset long-only funds by adaptively harvesting the time varying risk premia’.

Manfred Schraepler, Head Financial Assets and Liquid Private Markets of Aquila Capital said: “Our investors have always asked us for state of the art multi-asset investment strategies that seek opportunities with an adaptive approach, albeit with the potential to show resilience in turbulent market phases.”

The Fund, AC – Adaptive Diversification 12 EUR A, has been managed using the new investment process since the beginning of the year and has delivered top-quartile* total returns.