Passive vs. Active Portfolio Management Susans current portfolio managers (ABC Investors) only use the active management portfolio strategy. While Susans portfolio earned returns above the benchmark when she initially moved her investments to ABC Investors 5 years ago, the rate of return on her portfolio has fallen below the benchmark (TSX Index) for the last two years. Concerned about her portfolio, Susan recently started her own investigation of investment portfolio strategies. As part of her investigation, Susan attended a seminar on passive portfolio management strategies. At the seminar, the presenters mentioned numerous advantages of a passive management strategy over an active management strategy. Later that week, Susan did further investigation on the topic of portfolio manager styles and found several convincing articles that promoted the benefits of actively managed portfolios. Required: In your own words: List and explain three reasons why Susan should NOT use a manager who follows the passive portfolio management style. Manager Styles-Explain how GARP differs from the Growth Manager style..

1. Passive vs. Active Portfolio Management Susans current portfolio managers (ABC Investors) only
use the active management portfolio strategy. While Susans portfolio earned returns above the
benchmark when she initially moved her investments to ABC Investors 5 years ago, the rate of
return on her portfolio has fallen below the benchmark (TSX Index) for the last two years.
Concerned about her portfolio, Susan recently started her own investigation of investment portfolio
strategies. As part of her investigation, Susan attended a seminar on passive portfolio
management strategies. At the seminar, the presenters mentioned numerous advantages of a
passive management strategy over an active management strategy. Later that week, Susan did
further investigation on the topic of portfolio manager styles and found several convincing articles
that promoted the benefits of actively managed portfolios. Required: In your own words:
List and explain three reasons why Susan should NOT use a manager who follows the passive
portfolio management style.
Manager Styles-Explain how GARP differs from the Growth Manager style.