Passive management

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Passive management

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Small businesses are facing a not so happy New Year and will have to tighten their belts to deal with a host of new taxes, including Canada Pension Plan increases, new passive investment rules and the federal carbon tax in several provinces, warns the Canadian Federation of Independent Business (CFIB).
The key is that you will learn about many various business opportunities, as well as some passive investment options.
That effort is more compared to the effort involved in just making passive investment in the equity market.
These initiatives increase operational complexity and costs, adding to pressure on banks' earnings from low investment yields and clients moving to passive investment products following the underperformance of many actively managed investments.
The taxpayer represented that it was aware that having excess passive investment income could subject it to tax but was unaware that this could cause a termination of its S election.
She says advisors who are fee-conscious can now choose between active and passive investment strategies as well as between active quant strategies like BlackRock's and passive quant strategies, better known as smart beta.
As explained in the regulations implementing the HSR Act, this means that an acquirer must have "no intention of participating in the formulation, determination, or direction of the basic business decisions of the issuer." Since the availability of the "passive investment" exemption turns on the intent of the acquirer, which can change over time, acquirers must separately consider whether the exemption applies each time a purchase of voting securities is made.
Covestor was first digital asset management company to offer both active and passive investment options.
"Danske Bank is a passive investment and we take it for granted," Andersen said.
In "Leveraging the Best of Active and Passive Investment Approaches," Mazza and his co-author, Thomas F.

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