The Sortino Framework for Constructing Portfolios
Focusing on Desired Target Returnâ¢ to Optimize Upside Potential Relative to Downside Risk
The most common way of constructing portfolios is to use traditional asset allocation strategies, which match the clientâs risk appetite to a weighted allocation strategy of fixed income, equities, and other types of assets. This method focuses on how the money is allocated, rather than on future returns.The Sortino method presents an innovative change from this traditional approach. Rather than using the clientâs risk as the main factor, this method uses the clientâs desired return.
Primary: Portfolio managers of high net worth individuals and institutional investors,Wealth Managers and Financial Advisors in Private Bank, Money Management Firms, and Wealth Management Firms, Portfolio Managers and Investment Officers in Money Management Firms, Private Banks, and Wealth Management Firms