Investment Structures & Strategy PDF

Economics 1 1. Investment Structures & Strategy Learning Objective 1.1.1 Know the concepts behind: top-down investing; bottom-up investing; active management; passive management; quantamental investment 1.5.1 Be able to assess the main aims and investment characteristics of the following cash,...

Economics 1 1. Investment Structures & Strategy Learning Objective 1.1.1 Know the concepts behind: top-down investing; bottom-up investing; active management; passive management; quantamental investment 1.5.1 Be able to assess the main aims and investment characteristics of the following cash, bond and equity portfolio management strategies and styles: indexing/passive management; active/ market timing; passiveactive combinations 1.5.2 Be able to assess the main aims and investment characteristics of the following cash, bond and equity portfolio management strategies and styles: growth/income/value; market capitalisation; liability driven 1.5.4 Be able to assess the main aims and investment characteristics of the following cash, bond and equity portfolio management strategies and styles: contrarian; quantitative 4.6.14 Be able to assess the main bond strategies: bond switching; riding the yield curve; immunisation; rate anticipation; horizon analysis; Barbell/Bullet/Ladder portfolios 1.1 Aims, Characteristics and Strategies Broadly, investors invest their money to generate a satisfactory financial return on capital or, at the very least, a return of capital. Clearly, what is considered a ‘satisfactory’ return varies not only between assets but also between investors. In generating a return, investors can apply two main strategies: • • passive investment management, and/or active investment management. 3