Wealthfront Risk Parity Fund Class W (WFRPX)

Overview

The fund operates as a diversified investment platform, aiming to meet its investment objective by spreading its assets across a wide spectrum of asset classes. This includes investments in global developed and emerging market equities, fixed income from both developed and emerging markets, real estate investment trusts (REITs), and commodities. This broad allocation approach allows the fund to be dynamically positioned across various sectors and geographical markets. There is a flexible strategy in place regarding the allocation of assets, permitting the fund to adjust its investment percentages in each asset class according to market conditions and opportunities, without adhering to a preset limit on the percentage of assets that can be invested in any one class. This strategy aims to optimize the fund’s performance by taking advantage of diverse investment opportunities while managing risk.

Products and Services

The fund provides a range of investment opportunities spanning several asset classes, each with distinct characteristics and strategic importance:

• Global Developed and Emerging Market Equities: The fund invests in a mix of stocks from developed and emerging markets globally. This diverse exposure aims to capitalize on the growth potential of emerging markets while balancing the stability found in developed markets. The equity portion seeks to offer long-term capital growth through investments in a range of sectors and companies of various sizes.
• Global Developed and Emerging Markets Fixed Income: By including fixed income securities from both developed and emerging markets, the fund aims to provide investors with steady income streams while also offering potential price appreciation. This segment may include government bonds, corporate bonds, and other debt instruments, carefully selected to balance risk and return.
• Real Estate Investment Trusts (REITs): Investment in REITs allows the fund to include real estate exposure in its portfolio. REITs offer a way to invest in real estate without directly owning properties, providing potential income through dividends and capital appreciation. This asset class adds an element of portfolio diversification, as real estate often behaves differently from equities and fixed income.
• Commodities: The fund allocates a portion of its portfolio to commodities such as precious metals, energy, and agricultural products. Commodities can serve as a hedge against inflation and currency depreciation. This asset class may add a layer of protection during market volatility, as commodities prices often move independently of stock and bond markets.