While the Core portfolios are not designed to strictly adhere to specific downside risk levels, the broad mappings between Core and Global portfolios are set out below:
- The Core Defensive portfolio corresponds to the 9% Downside Risk portfolio for Global ARI.
- The Core Balanced portfolio corresponds to the 13% Downside Risk portfolio for Global ARI.
- The Core Growth portfolio corresponds to the 19% Downside Risk portfolio for Global ARI.
Downside Risk levels represent an investor’s risk threshold. A X% Downside Risk portfolio means that in the next 39 out of 40 years, the portfolio should not lose more than X% of its value in a given year.