Passive investment strategy

Passive investment strategy

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.
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Group finance director John Armstrong said: "Having delivered more than PS100m inward investment and developed homes for in excess of 1,000 people in Newcastle in recent years, it is with a sense of regret but perhaps also inevitability that we are having to adopt a more passive investment strategy and look at developments outside the region to realise our growth ambitions.
We are fully committed to a passive investment strategy and often use low-cost institutional managers who construct passive asset class mutual funds and core equity funds.
Jackson started work fairly early in life; he had a bit of a savings jump-start, yet assuming early earnings were invested on flashy trousers, the subsequent 30 years of work would have been placed in jeopardy by adherence to a passive investment strategy aligned to the Brainiacs of 1980.
Respondents cited lack of resources, including time and staff, as the main reason for employing a passive investment strategy.
A passive investment strategy involves investing the portfolio in a way that results in the returns of each asset category matching that of an index (e.
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