Investment Management Level 4 Ed3 - Filled Pages_Part1 PDF
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This document discusses investment structures and strategies, including top-down and bottom-up investing, active and passive management, and various portfolio management strategies. It details the aims and characteristics of different investment approaches, including cash, bond, and equity strategies focused on growth, income, and value.
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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