• Our main goal is consistency and risk control. Based in Paris and New York, our process integrates a proprietary technology that uses cutting-edge, risk-based weighting strategies. We offer unconstrained solutions in a range of single and multi-asset classes including equity, fixed income and commodity, whilst providing a transparent, consistent and risk-based approach.

     

  • Our expertise

    We provide efficient alternatives to conventional “cap-weighted” (equity) or “debt-weighted” (bond) portfolios, which can also be tailored to meet each investor's objectives. 

    Indeed, our approach uses risk contribution as the input in the model that determines weights, whereas market cap weighting uses size as the input to define weights and treats risk contribution as a random consequence. By using Rothschild & Co's unique proprietary technology, we can deliver client-focused solutions with capabilities across all asset classes. These solutions can outperform conventional approaches, while reducing volatility and limiting drawdowns.

    By using Rothschild & Co's unique proprietary technology, we can deliver client-focused solutions with capabilities across all asset classes. These solutions can outperform conventional approaches, while reducing volatility and limiting drawdowns.

    We offer client driven solutions, advising institutional investors on risk-based solutions that can be tailored to their investment needs. We do this through a broad range of investment vehicles:

    • Advisor for dedicated mandates
    • Advisor for funds or ETFs
    • Index Administrator for the R Risk-Based Index Series

    We benefit from three levels of adaptability to create bespoke client solutions:

    • Vehicle structure (fund / segregated mandate / SWAP / certificate)
    • Investment Universe (Global / Country focus / ESG)
    • Sub Asset Class (single asset portfolio / multi-asset portfolio)
  • Our philosophy

    We offer an alternative to market capitalisation weighting with an effective risk-based approach to index construction. We aim to deliver superior risk adjusted returns reducing significantly the volatility and the maximum drawdown compared with traditional market-capitalisation weighted portfolios.

    Risk should inform portfolio allocation, not the other way around
    In traditional weighting schemes, risk is an uncontrolled output of the constituent weights. We think the weight of a portfolio constituent should reflect its contribution to portfolio risk.

    Line-by-line analysis
    We analyse volatility and cross-correlation on a line-by-line basis to assess the marginal risk contribution of each portfolio holding.

    Simple and transparent
    We strive for model robustness, while employing transparent and straight-forward processes.

  • Our indices and products

    Our strategy aims to equalise risk contribution of index constituents and to maximise risk diversification - whilst overcoming excessive turnover and portfolio concentration.  

  • News and publications

  • Monthly letter - June 2017

    Perspective - May 2017

    Perspective R Valor - April 2017

  • Contacts

  • Disclaimer

    © Rothschild Risk Based Investments, LLC ("RRBI"). 
    RRBI is the Index Sponsor of the R Risk-Based Indices. The R Risk-Based Indices are calculated by an independent Calculation Agent. All rights in the R Risk-Based Indices vest in RRBI. All information is provided for information purposes only. Every effort is made to ensure that all information given in these publications is accurate, but no responsibility or liability can be accepted by RRBI or its licensors for any errors or for any loss from use of these publications. Neither RRBI nor any of its licensors makes any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the R Risk-Based Index Series or the fitness or suitability of the Index for any particular purpose to which it might be put. All figures and graphical representations in these publications refer to past performance and are sourced by RRBI. Past performance is not a reliable indicator of future results. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of RRBI. Distribution of RRBI data and the use of RRBI indices to create financial products require a licence with RRBI and/or its licensors. RRBI is not an investment adviser, and nothing herein constitutes financial or investment advice, or constitutes an offer or invitation to buy or sell any investment or participate in any investment activity.