The launch coincides with a surge in investor demand for strategic beta strategies as investors weigh the pros and cons of active and passive management
The strategy employs a global approach to asset allocation, and uses a cost-effective blend of active and passive management
to achieve its objectives.
are mostly index-tracker funds which supposedly do exactly that - track the performance of a particular index, eg the FTSE 100, S&P 500, Topix.
Combining quantitative treatment with conceptual discussion, the author presents fourteen chapters on the nature of financial markets, the efficient market theory, return and volatility estimates, diversification benefits and correlation estimates, the Capital Asset Pricing Model and Arbitrage Pricing Theory, the equity fundamental multifactors model, financial derivatives, fixed income and interest rate risk, liquidity risk, active management versus passive management
, stress testing and back testing, and the third Basel Accord on banking supervision.
He emphasised that passive management
does not mean that you have to hedge a 100 per cent of the transaction value but it's now a strategy to move towards optimal from sub-optimal passive hedge.
We believe buy and hold strategies are a thing of the past and passive management
is not at the core of our practice.
In fact the estimate for a net flow of $516 million from passive funds may well be rather conservative, because many passive management
funds have already exited the Greek bourse due to its low bearing, so the outflow from the Athens Exchange's demotion from the developed market category will amount to no more than $100 million, the Citigroup report notes writes Kathimerini.
WHEN placing your money into an investment portfolio, there are two main investment strategies available - active or passive management
Factor 1 was named as Contingent reward, Factor II is known as Passive Management
by Exception, and Factor III was named as Active Management by Exception
Active management produces desired results; passive management
produces catastrophic events.
As for active versus passive management
strategies, investors would do well to gain exposure through active management, Jafree says.
He said that the fund would provide 'exposure and passive management
in an efficient way, when active fund management has taken a hit.