A style of investment management that seeks to attain performance equal to the market or returns. In pure index funds, no judgements are made about future market movements, although more sophisticated managers usually offer tilted portfolios. (Opposite of Active Management).
Fund managers do not attempt to beat the market. Instead, they try to mirror the performance of a selected market index such as the FTSE 100.
Management strategy to buy a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities
A management approach that has the goal of matching risk and return characteristics of a single market segment by holding all of the securities that comprise the particular market segment you are looking at.
Style of management which tries to match a particular index or benchmark performance, by attempting to duplicate the structure of its composition rather than attempting to surpass it. Passive management is a more "hands off" approach than active managemen t and strives to achieve long-term returns with limited portfolio maintenance and at a lower cost.
money management strategy that seeks to match the return and risk characteristics of a market segment or , by mirroring its composition. also called passive portfolio strategy. see also active management
A style of investment management that seeks to return the same as an index. In other words another name for tracking. A more complex tracking method can tilt investment with the aim of producing improved returns.
managing a portfolio to match (not exceed and not lag) the return of a benchmark
An investment management approach that seeks to achieve results equal to the market or index returns.
This portfolio management strategy aims to match the performance of a market or customized index as closely as possible on a gross-of-expense basis. The expected addition of value for such a portfolio is negative, due to the impact of fees and expenses.
A portfolio management strategy where a portfolio is designed on a long-term basis to meet specific return parameters ( e.g achieving a target rate of return, matching a set of future liabilities, matching a benchmark return). A passive index fund, where most or all of a specified market index's constituent securities are owned in the same proportions as the index in order to match its return, is a common form of management. Proponents of passive index funds argue that active stock-picking does not work or is too costly (c.f. active management, anomaly switching, dedication, immunisation).
A portfolio strategy that seeks to remove the risk of under- or outperforming a specified index or benchmark by matching the movement of that index or benchmark. The most common form of passive management is replication, whereby a manager seeks to replicate the performance of a particular index through the purchase of all, or a sample, of that index's constituents.
Portfolio management with the aim of achieving the same performance as a benchmark. Opposite: active management.
Management approach in which human intervention in an ecosystem is minimal, with natural processes such as fire and insect and disease infestations allowed to play out their ‘natural' role. For fire management, this would mean allowing some lightning fires to burn or allowing only prescribed fires with burning prescriptions that mimicked the natural fire regime in size, intensity, and frequency.
Passively managed funds invest in the stocks underlying the index being tracked. Each stock makes up a proportion of the index and consequently the passive fund aims to invest the same proportions into the fund.
a style of investment management that seeks to achieve performance equal to the market or index returns.
Generally, buying and holding a securities portfolio designed to represent a broad market index. Passive strategies usually do not attempt to identify and buy only securities thought to offer... read full article
Accepts asset class returns allowing benchmarks to define strategy.
A market strategy that involves selecting a benchmark index to assure investment performance is the same as the underlying index. Passive investing assures that an investor will not underperform (or outperform) a market index. Passive management is opposite of active management.
A portfolio management strategy that seeks to match the composition, and therefore the performance, of a selected market index. Also referred to as Indexing.
Passive portfolio Passive portfolio strategy
A strategy that relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities.
investing in securities of an index or â€œtrackingâ€ an index; costs associated are less than that of active management
Investing in a fund or other pooled investment vehicle that attempts to match the risk/return pattern of a market index.
Investment management that seeks to structure a diversified portfolio whose return will replicate, or at least approximate, the average return generated by a preselected securities universe. (See Active Management.)
(Gestion Passive) A method of management that seeks to keep a portfolio's asset allocation and selection aligned with a long-term objective, often benchmarked against an index or group of indexes.
See UK index tracker
A style of investment management that aims to achieve investment returns in line with those of a specified market or index. May also refer to a style of investment management that focuses on holding investments for an extended period rather than trading to maximise gains.
A mutual fund management style in which the fund manager simply buys whatever stocks are represented by a well-known market index, and trades only when the composition of the index changes.
Buying or investing in a portfolio that represents a market index without attempting to search out mispriced sectors or securities. The opposite of active management.
An investment approach which aims to mirror or 'track' the performance of a financial index. This is normally done by either investing in the exact constituents of an index or by taking a representative 'sample' of that index. The managers of the fund have lower expenses than active fund managers, and the charges to investors are therefore lower.
Investment strategy that replicates the performance of a specified index or benchmark.
Investment strategy designed to closely track an index.
Passive management (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the performance of an externally specified index—called 'index funds'. The ethos of an index fund is aptly summed up in the injunction to an index fund manager: "Don't just do something, sit there!"