Downside Risk Monitor (DRM)

Downside Risk Monitor ((DRM) is an innovative software for risk analysis and asset allocation DRM sets a priority on avoiding investment losses by implementing asset allocation and portfolio optimization using a customized asymmetric risk measure which closely reflects the investors’ risk averseness. The software for managing downside risk may be integrated seamlessly with other available portfolio management tools.

Efficient frontier with minimal downside risk strategy

The management scope of DRM includes:
Small to medium size portfolios with stocks, bonds, funds, or ETFs
Robust asset allocation respecting different constraints
Efficient frontier analysis of downside risk versus excess return
Excess return distributions with optimal downside risk protection

Excess return distribution with suppressed downside

Consulting and management services are provided for financial analysis and management of existing or new portfolios using the full toolbox of the Downside Risk Monitor. Historical backtesting and analysis for selecting the optimal asset allocation strategies.

Specific services include:
Portfolio universe definition and/or pruning
Historical data analysis for returns, dividends and splits
Backtesting of portfolio performance
Strategy testing for downside risk/target return
Downside risk measure customization
Periodic asset allocation and rebalancing

DRM software settings

The DRM software features a user friendly interface, data input from spreadsheets, a rapid optimization engine and delivers effective and robust asset allocation which may be presented using standard Excel analysis and graphics.

Please contact ISC for specific proposals for customized portfolio management applying Downside Risk Monitor.