passive investment management

Passive investment management

Buying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.

Passive Management

The practice of a money manager or a team of money managers making investment decisions on what securities to include in a fund or portfolio, and then leaving those securities largely unchanged for a significant period of time. To give a very simple example, an investment manager may buy every stock on the Dow Jones Industrial Average and hold them for a period of five or 10 years. Passive investment managers seek a well diversified set of securities. See also: Indexing, Active investing, Value investing.

passive investment management

A method of managing an investment portfolio that seeks to select properly diversified securities that will remain relatively unchanged over long periods of time. Passive investment management involves minimal trading, based on the belief that it is impossible to beat the averages on a risk-adjusted basis consistently. Compare active investment management.
References in periodicals archive ?
For instance, clients often encounter differing advice on the merits of active versus passive investment management.
The NTGI approach to passive investment management is based on our proprietary 'Intelligent Indexing' technique, which aims to track the index whilst employing rigorous quantitative models in combination with sophisticated trading techniques to minimise trading costs and risk.
Investors can choose between two distinct and diversified investment programs: active investment management and passive investment management.
FundQuest has been conducting research on the benefits and challenges of active and passive investment management for years," says Tim Clift, Chief Investment Officer at FundQuest.
Since introducing the industry's first index mutual fund in 1976-- the $107 billion Vanguard(R) 500 Index Fund--Vanguard has established itself as a leader in the passive investment management approach, with 56 stock, balanced, and bond index funds, as well as 14 commingled index trusts.
Since introducing the industry's first index mutual fund in 1976-- the nearly $100 billion Vanguard(R) 500 Index Fund--Vanguard has established itself as the leader in the passive investment management approach, with 53 stock, balanced, and bond index funds, as well as 14 commingled index trusts.
Since introducing the industry's first index mutual fund in 1976-- the nearly $100 billion Vanguard(R) 500 Index Fund-- Vanguard has established itself as the leader in the passive investment management approach, with 53 stock, balanced, and bond index funds, as well as 14 commingled index trusts.
As Japanese pension sponsors look for ways to control portfolio risk, there has been increasing focus on passive investment management.
The S&P SmallCap 600 is gaining acceptance as the preferred benchmark for both active and passive investment management due to its low turnover and greater liquidity.
The SmallCap 600 is gaining wide acceptance as the preferred benchmark for both active and passive investment management due to its low turnover and greater liquidity.

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