AQR Capital Management, LLC (“AQR”) launched the AQR Global Risk Premium Trust (“Fund”), an Australian domiciled registered trust catering to institutional investors, in late 2011. The Fund now has over 500 million AUD invested from Australian institutional clients, including a recently funded allocation from ipac Asset Management Limited. AQR Principal Jeff Dunn said “The financial crisis has continued to highlight the need for investors to reduce the reliance on equity dominated portfolios. The Global Risk Premium Trust directly addresses this need by delivering efficient access to a highly-diversified portfolio of traditional asset classes, not just equities.” Mr. Dunn said “The ‘risk parity’ approach to building portfolios, which underlies the Fund’s strategy, aims to decrease the importance of equities and increase the importance
of everything else. That is, make everything matter but nothing matter too much” The Fund was launched in November 2011 to provide Australian investors with direct, liquid and cost effective access to a strategy AQR has managed since 2006 through offshore vehicles. Talking about the Global Risk Premium strategy’s track record, Mr. Dunn added: “The strategy’s live performance through the financial crisis has been very pleasing, clearly demonstrating the value of diversifying away from the traditional equity dominated portfolios.” AQR currently manages more than US$10 billion globally in risk parity strategies.