Equity portfolio and Sortino ratio
Sortino
A turnkey equity portfolio, ultra-selective thanks to the Sortino ratio.
The efficiency of equities and the Sortino ratio
Sortino Portfolio
The Sortino portfolio is invested in equity funds. Its unique methodology combines the potential leverage of equities with the drastic selection imposed by the Sortino ratio. Each equity fund must be in the top 25% of the panel over 5 analyzed periods (from 1 to 10 years), as well as in the top 25% of the sum of Sortino ratios over these same periods. A long-term investment, our portfolio brings together equity performance and risk, along with the efficiency of management guided by the Sortino ratio and managed by Investisseur Privé AM. You delegate, we manage for you!
Our Sortino management combines our own database of around twenty indicators with the Sortino ratio. The latter acts as a qualitative filter, but also as a rebalancing tool. Our allocation evolves to retain only excellence in equity funds, with a weighting limited to 5%, i.e. a maximum of 20 funds. If a quantum of 20 funds meeting the Sortino ratio requirements is not reached, the balance is invested in money market funds.
Lucas de Raemaeker
Head of advisory and marketing
An attractive Sortino portfolio, under managed mandate
With Investisseur Privé, you benefit from transparent and reduced fees, without compromising on the value of our management.
- 0% Entry fees
- 0% Deposit fees
- 0% Arbitration fees
- 0% Exit fees
- 0.4% Managed portfolio fees
Sortino portfolio in figures
Sortino brings together long-term investment, selectivity, high returns and the risk associated with equities.
Investment horizon
Recommended investment duration
8 years
Expected annual return
7.56%
Risk scale
1
2
3
4
5
6
7
3 key indicators
We analyze each fund in our portfolio and define its investment horizon, expected return and associated risk. You can thus judge whether it meets your requirements.
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Sortino portfolio allocation
100% invested in equities and money market, the Sortino portfolio combines long-term appreciation and regular rebalancing.
100%
Equities
EQUITIES
Sortino
Eligible for 3 tax wrappers: Life insurance, Capitalization contract, PER.
*Past performances do not prejudge future performances.
Investing in Sortino with the right tax wrapper
The Sortino portfolio is eligible for 3 tax wrappers. You select the tax wrapper, and our experts manage the portfolio.
Life insurance
Grow your investments while benefiting from reduced taxation and optimized wealth transfer.
Capitalization contract
Boost your capital through a wrapper combining optimized taxation and estate transfer.
PER
Reduce your taxes today while building capital or an annuity for retirement.
Life insurance
Grow your investments while benefiting from reduced taxation and optimized wealth transfer.
Capitalization contract
Boost your capital through a wrapper combining optimized taxation and estate transfer.
PER
Reduce your taxes today while building capital or an annuity for retirement.
Investing in the
Sortino portfolio
With Sortino, combine equity performance and Sortino ratio under managed mandate!
01
Initial deposit
€20,000
02
Ad hoc contributions
€500
03
Scheduled contributions
€50 per month
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Sortino portfolio under managed mandate
You bring together:
- Long-term equity performance.
- Drastic selection of the best funds through the Sortino ratio.
- A diversified portfolio: 5% max allocation per fund.
- Sortino's eligibility for 3 tax wrappers.
- Managed portfolios and continuous rebalancing.
Receive the
opportunity flash
Markets, investments and taxation are constantly evolving. Don't miss any investment opportunity with "Le flash opportunite"!
Other portfolios than Sortino
We manage other equity and bond portfolios, based on your tax wrappers, risk profile and return objectives. We offer four different complementary managed portfolios with different selection criteria.
Audace
A portfolio composed of 100% equity funds to benefit from stock market performance, combined with sector and geographic diversification.
Equilibre
A geographically diversified portfolio of equities and bonds, continuously arbitrated to benefit from all financial markets.
Thématique
A diversified equity portfolio invested in future sectors and promising themes, to benefit from major economic and societal trends.
Audace
A portfolio composed of 100% equity funds to benefit from stock market performance, combined with sector and geographic diversification.
Equilibre
A geographically diversified portfolio of equities and bonds, continuously arbitrated to benefit from all financial markets.
Thématique
A diversified equity portfolio invested in future sectors and promising themes, to benefit from major economic and societal trends.
Understanding the Sortino ratio
Educational content to help you learn before investing in the Sortino portfolio: articles, white papers, newsletters, videos and webinars.
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Frequently asked questions about Sortino
Want to invest in the Sortino portfolio? Here are the answers to the questions you're asking.
The Sortino ratio is a risk-adjusted performance indicator that measures an investment's return only relative to downside risk. Unlike the Sharpe ratio, from which it is derived, the Sortino ratio does not penalize positive volatility, i.e. the risk generated when the investment rises. It focuses on negative fluctuations, i.e. when returns are below a defined threshold.
To calculate the Sortino ratio, you need to: Set a target return (often the risk-free rate of the 10-year OAT) = T. Measure the downside deviation of the portfolio or investment = Dd. Calculate the average return of the portfolio or return on investment = Rp. The simplified Sortino ratio formula is: Sortino Ratio = (Return - Target Return) / Downside Risk = (Rp - T) / Dd. This calculation must be performed for each period. At Investisseur Privé, we analyze the returns of the equity funds we select over 5 periods: 1 year, 3 years, 5 years, 8 years and 10 years. Speak with one of our advisors!
The interpretation of the Sortino ratio for a portfolio or investment is as follows: The higher it is, the better the performance for a given loss risk. A low ratio means that negative returns are frequent or too significant. Ultimately, the Sortino ratio indicates how much return is obtained for each unit of downside risk.
Because the Sortino ratio: Focuses on losses, not overall volatility. Is particularly suited to diversified portfolios and equity funds. Reflects the real perception of investment risk. In summary, it allows you to judge whether a portfolio's performance truly compensates for potential downturns. It is particularly relevant for selecting the most consistent equity funds that optimize return levels. Using the Sortino ratio allows adapting equity market exposure (% of equity funds in the portfolio) according to market context. If an insufficient number of funds meet our ratio requirements, we limit the equity fund allocation in favor of holding funds (money market funds). This is why we use the Sortino ratio at Investisseur Privé.
The Sortino ratio is a rebalancing tool to optimize the management of an equity or fund portfolio. By measuring portfolio performance, it focuses on the real risk of loss. Specifically at Investisseur Privé, we use it as a compass in our rebalancing decisions. As soon as a fund in our Sortino portfolio shows an unfavorable ratio, we remove it from our allocation and replace it with a better-performing equity fund. It is a selectivity filter, a managed portfolio tool.
Because Sortino follows a rigorous two-step methodology: Drastic selection of the best funds over five analysis periods (1, 3, 5, 8 and 10 years). We apply it to our entire panel of equity funds (over 450 available funds). In other words, a fund must be in the top 25% over each of the 5 analyzed periods, as well as in the top 25% of the sum of Sortino ratios over these same 5 periods. Furthermore, each selected fund cannot represent more than 5% of the allocation, targeting 20 funds in the portfolio to diversify positions. Dynamic rebalancing in portfolio management. As soon as a fund has a deteriorated ratio, it leaves our allocation. Similarly, a fund with a high Sortino ratio will join our portfolio. Thus, in managing our portfolio, the Sortino ratio must remain positive over short and long periods. Contact one of our advisors to learn more!
It all depends on your wealth situation, tax situation, projects and objectives. The Sortino portfolio composed of the best equity funds and managed by Investisseur Privé is eligible for 3 tax wrappers: Life insurance: taxation, inheritance and returns. Capitalization contract: usufruct splitting and donation. Retirement savings plan (PER): tax deduction and long-term growth. You benefit not only from a portfolio that minimizes loss risk but also from its eligibility for tax-advantaged wrappers in terms of taxation, inheritance, etc. Book an appointment with one of our advisors!
With managed portfolio management, you don't have to do anything! You confidently delegate the selection of the best equity funds and rebalancing to our team. You benefit from potential appreciation of the Sortino portfolio, aligned with your objectives and risk profile, and receive regular monitoring.