equity portfolio management. role of the equity portfolio significant source of wealth today...

Download Equity Portfolio Management. Role of the Equity Portfolio significant source of wealth today equities constitute differing proportions of average portfolio

Post on 21-Dec-2015

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  • Slide 1
  • Equity Portfolio Management
  • Slide 2
  • Role of the Equity Portfolio significant source of wealth today equities constitute differing proportions of average portfolio weights in different countries one characteristic important to investors across markets is ability to be an inflation hedge equities have comparatively high historical long-term rates of return in study of 17 countries the long term real rates of return to equities exceeded that of bonds in all countries
  • Slide 3
  • Equity Investment passive management active management semiactive management
  • Slide 4
  • Passive Management no attempt to reflect investment expectations through changes in security holdings indexing attempt to match the performance of some benchmark in US alone, more than $1 trillion in institutional indexed equities
  • Slide 5
  • Active Management principle way historically that investors manage equities even with growth of indexing, still accounts for overwhelming majority of equity assets managed seek to outperform benchmark
  • Slide 6
  • Semiactive Management enhanced indexing or risk-controlled active management seek to outperform benchmark but manager worries more about tracking risk than active manager and builds portfolio that will have limited volatility around benchmarks return
  • Slide 7
  • Indexing, Enhanced Indexing, and Active Approaches: A Comparison IndexingEnhanced Indexing Active Expected Active Return 0%1% - 2%2% + Tracking Risk

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