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Special Report on

Active versus Passive Management

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Ever since the first index portfolios were introduced in the 1970s, various debates have ensued over the merits of active versus passive investment management styles. Simply put, active money managers seek to beat the market's returns as measured by a particular index or benchmark. An index is a broad measure of the market or a market sector's performance determined by the investment performance of a specific group of securities. Index or passive investing, on the other hand, simply attempts to match the returns of a particular index or benchmark. While arguments have been made touting the benefits of one particular ...
(buys and sells) the fund's investments in accordance with the fund's investment objective. In the U.S., a fund registered with the Securities and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules must distribute nearly all of its net income and net realized gains from the sale of securities (if any) to its investors at least annually. Most funds are overseen by a board of directors or trustees (if the U.S. fund is organized as a trust as they commonly are) which is charged with ensuring the fund is managed appropriately by its investment adviser and other service organizations and ...
Study Debunks Another “Active vs. Passive” Myth | ETF Database
The active versus passive management debate has been raging for decades, and isn’t likely to be resolved at any point in the near future. Academics and investors have amassed mountains of evidence indicating that, after the consideration of fees, passive strategies nearly always outperform active ones (sign up for our free ETF newsletter for the proof). But many have have argued that active strategies may be preferable in certain situations. Thus a “compromise” in this ongoing debate was reached: passive indexing strategies are best for large stocks but active strategies can work better for small cap equities . market research, surveys and trends
The Case For Active Management
Due to changing circumstances over time, statements made in archived material may or may not have continued applicability or relevance in today's environment. Any thoughts concerning market movements and future prospects for small-company stocks are solely those of Royce & Associates, LLC, and, of course, there can be no assurance with regard to future market movements. Small- and micro-cap stocks may involve considerably more risk than larger-cap stocks. All performance information reflects past performance, is presented on a total return basis and reflects reinvestment of distributions. Current performance may be higher ... market research, surveys and trends


Active Versus Passive Management
with Westinghouse, for example, or a new company such as Google joins the ranks of large company stocks. Passive managers often construct their portfolios to closely approximate the performance of well-recognized market benchmarks such as the Standard & Poor’s 500 index (large U.S. companies), Russell 2000 index (small U.S. companies) or Morgan Stanley EAFE index (large international companies). It Seems Too Simple When first exposed to the concept of passive management, novice and experienced investors alike tend to dismiss the idea as hopelessly naive. How is it possible that a "mindless" strategy of buying and ... industry trends, business articles and survey research
FPA Journal - Indexing Versus Active Mutual Fund Management
... over the relative benefits of active versus passive management in the ... Malkiel (1996) notes that over the past 25 years, about 70 percent of .... million). The smallest category was Small Company Equity funds ($206.16 million) . ... industry trends, business articles and survey research
Investors actively going for passive funds
Your choice of both actively managed unit trust investments and passive funds that track at index has never been wider. But the advantage of tracker funds is that the risk of choosing an under-performing active manager is eliminated. July 3, 2010   By Bruce Cameron Mainline active asset managers are increasingly moving into the passively managed investment space, which is becoming ever more popular with investors. Active asset managers now selling passively managed investments include Old Mutual, through its Dibanisa investment management boutique; Absa, in association with Plexus Asset Management, with its NewFunds; ... market trends, news research and surveys resources
Gold investing can have pitfalls
I am inclined to agree with your comments. I invested in gold in the 80s partly by buying gold that was stored for me. Unfortunately the company involved was Goldcorp. Investors lost everything. I also bought gold coins, which I kept in the bank until they informed me they would not store them any longer. So I kept them in my sock drawer for a few years, until I thought that a bit risky and sold them. I now have some shares in a goldmining company and, despite the recent rise in gold prices, they have managed to destroy shareholder value by forward selling several years' production at a small fraction of the present price. ... market trends, news research and surveys resources


Active versus Passive Investment Management: Putting the debate ...
at a similar conclusion when studying active versus passive management across asset ..... How much to incorporate active versus passive management in your ... technology research, surveys study and trend statistics
Program Guidelines - Surveillance - Page 4
Surveillance methods can be divided into four general categories: passive, active, sentinel, and special systems. In general, passive and active systems are based on conditions that are reportable to the health jurisdiction. Sentinel systems and special systems are usually designed to obtain information that is not generally available to health departments. Passive Surveillance Passive surveillance is the most common form of surveillance and relies on standardized reporting forms or cards provided by or available through the state or local health departments. These completed forms are returned to the health ... technology research, surveys study and trend statistics
"Today's fad is index funds that track the Standard and Poor's 500. True, the average soundly beat most stock funds over the past decade. But is this an eternal truth or a transitory one?" "In small stocks, especially, you're probably better off with an active manager than buying the market." "The case for passive management rests only on complex and unrealistic theories of equilibrium in capital markets." "Any graduate of the ___ Business School should be able to beat an index fund over the course of a market cycle." Statements such as these are made with alarming frequency ...
What is active versus passive management with regard to mutual ...
passive management just tracks an index, as such you will kind of replicate a particular index or a sector that the fund follows. Active fund management is where the manager trys to use his skill to beat an index by buying instruments that he believes will make money. The two extremes of this is an ETF (totally passive) and a black box hedge fund (highly active) 1 year ago 100% 1 Vote There are currently no comments for this question. * You must be logged into Answers to add comments. Sign in or Register . No other answers.
Tax Law (Questions About Taxes): Passive versus active landlord ...
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. ...