Risk

Maximum Drawdown

The maximum drawdown is the largest percentage loss from a peak to the subsequent trough.

Maximum drawdown measures the largest percentage decline from a previous peak to a subsequent trough within a specified period. Data frequency, currency and the handling of contributions affect comparisons.

In Investboard it helps put historical declines alongside your capacity for loss. A historical decline is not a ceiling on future losses; a simulated stress scenario is not a measured drawdown.

The terms in practice.

Investment Policy Statement for private investors: your mandate

The Investment Policy Statement, translated for the self-directed investor: a set of rules you write yourself, to bind today's calm mind to tomorrow's stressed one.

Maximum Drawdown

The terms in practice.

Investment Policy Statement for private investors: your mandate

From knowledge to clarity