Common to all the Destra investment offerings is the goal of providing market leading returns with an eye towards downside risk -- we call this Responsible Alpha®. Our experience working with financial advisors shows investing is not about beating an index, it is about helping clients achieve their objectives and goals. The pursuit of Responsible Alpha® is the guiding principle to all the investment products Destra offers.
Responsible Alpha® in Action
The graph below shows the importance of limiting downside losses in a portfolio. For example, a portfolio that looses 10% needs to earn 11% just to get back to it’s starting value. Take this example out further, to a 20% or 50% loss and you can see the consequences of negative compounding. By attempting to limit the downside through managing risk, investors may be able to achieve greater performance over the long-term horizon and just as importantly, have the confidence and conviction to stay invested.
The above is a graphical depiction of the return needed to offset gain/loss.