Downside Risk Aware (DRA)

Portfolios Seek Compound Growth while Managing Downside Risk

DRA portfolios are structured more conservatively to help protect capital in the event of a down market. By pursuing capital protection when the market is down and participation when the market is up, these portfolios seek to meet risk-aware investors’ goals and avoid losing money.

If your portfolio needs to recover a loss,
it's not compounding wealth - it's just 
playing catch up. Sometimes it's best
to "win" by not losing

How Does this Adaptive Approach Work?

  • Downside Protection: By measuring risk as loss potential, the DRA portfolios seek to grow capital through investments and strategies that have historically exhibited an advantage during market corrections.

  • Risk-Efficient Capital Growth: The DRA portfolios seek growth with less volatility relative to their benchmarks. By sacrificing incremental upside for additional downside protection, the portfolios typically exhibit less risk while targeting similar returns.

  • Tighter Portfolio Risk Controls: Every allocation change in these portfolios is evaluated by its risk/return tradeoff and its impact on overall loss potential. The risk controls embedded into the DRA portfolios are more conservative than their benchmarks and other model offerings to pursue a greater level of capital preservation.

Strict discipline to downside risk management focuses in on probability of loss, rather than volatility. In other words, portfolios are designed to grow assets and smooth out the ride.

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*Biblically Responsible Investing (BRI) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the selection of investments available will be smaller.