Writing Underwater
Writing Underwater
(OP)
This is part of a report by a respected Australian investment fund:......."It represents investments made by the Fund's active style investment managers and enhanced passive investment managers"
Can someone interpret what this statement means?
Can someone interpret what this statement means?





RE: Writing Underwater
RE: Writing Underwater
I prefer math & Shakespeare: exp(pi*i+1) It is a tale told by an idiot - full of sound and fury, signifying nothing.
RE: Writing Underwater
SMF1964 pretty much got it right.
Where I come from a local expression is when someone who is not speech defective speaks and appears the only person understanding, they are said to be "talking underwater".
Lips can be seen moving and sounds heard, but what is being said is extremely difficult to comprehend.
As writing must be read I felt "Writing Underwater" appropriate.
RE: Writing Underwater
To create your own gobbledygook sentences
select one phase from each of the groupings 1-10, 11-20, 21-30 & 31-40.
1 One might say
2 Aesthetically speaking
3 On the other hand
4 Based upon inter-disciplinary considerations
5 With sensitive respect for human scale
6 Indubitably
7 Above and beyond plebian comfort objectives
8 Beyond the horizon of the human intellect
9 Architecturally thinking
10 In the final rationalization
11 the massing of major elements
12 the introduction of brutalism
13 the treatment of the main façade
14 the initial stage of conceptual development
15 the by-product of repetitive space articulation
16 the life-cycle cost control
17 the environmental impact analysis
18 energy conservation regulations
19 the structural dynamic analysis
20 the internal use adjacencies and circulation
21 must utilize and be functionally interwoven with
22 maximizes the real probability of cost overruns for
23 adds specific critical path events to
24 necessitates that urgent considerations be made of
25 requires exhaustive trade-off study to arrive at
26 is further compounded by taking into account
27 presents extremely synergistic challenges to
28 recognizes the critical necessity to subtract from
29 imposes smothering constraints upon
30 adds overriding three dimensional constraints to
31 the sophisticated design solution
32 the anticipated degree of human ambiance
33 the acuteness of the conflict gradient
34 the pragmatics of value engineering
35 the final quantitative analysis
36 the evolution of performance specifications
37 the philosophy of commonality and standardization
38 the study of true fecundity in the state of the art
39 the creation of an immortal monument to posterity
40 the final abortion
Picking 5, 12, 21 & 39 yields - With sensitive respect for human scale the introduction of brutalism must utilize and be functionally interwoven with the creation of an immortal monument to posterity.
RE: Writing Underwater
RE: Writing Underwater
RE: Writing Underwater
RE: Writing Underwater
In other words, let's assume that an investment manager is being judged by his/her performance against the DJ average. If that manager were then to position the fund so that all shares were properly distributed within the DJ stocks, then that manager will perform almost identically to the DJ average. That's a passive investment manager.
However, if that same manager positioned 80-85% of the shares in DJ stocks, but assumed a little more risk with the other 15-20% of the fund, then the manager will have enhanced his passive position. The fund is still predominately passive (80-85%), but has been enhanced by the remaining shares.
Active style managers assume considerable more risk with their portfolios.
The statement in the opening post is trying to say that the referenced investments appeal to both the low-risk (passive) fund managers and the high-risk (active) fund managers, but is so full of flowery manure that it probably misses the point.
Good Luck
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As a circle of light increases so does the circumference of darkness around it. - Albert Einstein
RE: Writing Underwater
RE: Writing Underwater
Good Luck
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As a circle of light increases so does the circumference of darkness around it. - Albert Einstein
RE: Writing Underwater
I see a guy, sitting on his couch smoking pot in a cigarette made with his rolled up paycheck.
RE: Writing Underwater
RE: Writing Underwater
Not wishing to defend the fine example of corporate gobbledygook that rnd2 has presented, my financial adviser makes the following distinction:
Active Investment Manager: Attempts to beat the performance of the relevant benchmark index (e.g. Dow Jones, FTSI, ASX200, etc), by analysing stocks within that index, and adopting "overweight" positions in those stocks that are expected to outperform the index, and being "underweight" in those that are expected to underperform. Their objective is to provide annual returns that are higher than the benchmark indices. (In my experience, roughly half of them achieve this objective,a and roughly half of them fail - pretty much the same results that you get by choosing stocks by throwing a dart at the financial papers!)
Passive Investment Manager: Selects and maintains an investment portfolio so that the proportions of the stocks held match the chosen benchmark index (within a small tolerance). Their objective is to provide returns that closely match the performance of the chosen index.
For example, if Company A makes up 5% of the value of the ASX200, then a Passive Investment Manager who is using the ASX200 as the benchmark will adjust the portfolio so that the holding in Company A is 5% of the total portfolio value.
If analysts predict that Company A is likely to trend upward faster than the ASX200, then an Active Investment Manager will hold more than 5% of Company A BEFORE it moves upward. A Passive Investment Manager will follow Company A's performance, and will buy more of Company A AFTER it's price rises, and AFTER it becomes worth more than 5% of the ASX200.
I would guess that an "Enhanced Passive Investment Manager" has whiter teeth and shinier shoes than a conventional "Passive Investment Manager".
RE: Writing Underwater
So on this occaision enhanced infers some sort of activeness? We have an active passive investment manager.
RE: Writing Underwater
I know in the wine industry a style of wine is a wine similar to a particular (famous) region but cannot legitimately be claimed to be from it.
RE: Writing Underwater
RE: Writing Underwater
The difference between an active investment manager and a passive one is approx. 2-2.5 % as far as the management expense ratio is concerned (in Canada anyway), so you're better off investing in INDEX funds (passively managed)that merely reproduce the returns of the stock index, without charging the investor too much.
Over the long term, say 30 yrs, this difference could amount to substantial losses...like hundreds of thousands of dollars to the investor.
RE: Writing Underwater
Keep the wheels on the ground
Bob
RE: Writing Underwater
If "enhanced" modifies "passive" then my interpretation is that this guy (gal) sleeps a bit longer than most, maybe, in extremis, even hibernates.
I hear one guy just come out of a 19year coma: now that's "enhanced passivity".
JMW
www.ViscoAnalyser.com
RE: Writing Underwater
I may have enhanced my passivity by napping thru the lunch hour.
What fun!
Goober Dave
RE: Writing Underwater
RE: Writing Underwater
My conclusion, which in retrospect should have been a question, came from CajunCenturion and JulianHardy's excellent posts.
Before this, I too believed passive meant doing nothing and if that were a good thing then to enhance passive meant less than nothing. As this fund is supposed to EARN money not LOSE money, this did seem a wrong interpretation.
Enlightened by C & J's persuavsive interpretation I arrived at active passive which is an oxymoron. So, an enhanced passive manager is a moron on oxygen?
RE: Writing Underwater
Sweet Dreams