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 ?
You have a lot of complexity that you're trying to deal with today," Turner said, citing uncertainty about regulations, global volatility, difficulty generating alpha and investors shifting toward passive investment management.
Contract notice: A Multi-Provider Framework for the provision of Passive Investment Management Services.
The report also shows that 44 percent of surveyed asset managers plan to build passive investment management capabilities in-house.
For instance, clients often encounter differing advice on the merits of active versus passive investment management.
Investors can choose between two distinct and diversified investment programs: active investment management and passive investment management.
The choice between active and passive investment management is not an either/or proposition because the lines between active and passive are blurring.
Prior information notice without call for competition: Ncct41031 multi provider framework agreement for the provision of passive investment management services.
This shift will be beneficial to firms like Charles Schwab (SCHW) along with passive investment management firms such as State Street (STT) and robo-advisors.
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.

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