Passive portfolio management involves buying and holding index funds with minimal changes, suitable for 80% of a standard portfolio, while active management relies on stock picking and frequent changes for the remaining 20%, requiring consistency, a clear philosophy, and minimizing trading. An integrated asset allocation approach determines an optimal mix based on capital market conditions and investor objectives, regularly revising the mix such as from 60-40 stocks to bonds or 80-20, with feedback shaping further adjustments over time.

1. Equity Strategies Passive vs. Active Management Passive: Trust the index Buy and forget No changes. Could be 80% of standard portfolio Active: Trust your instincts Rapid-fire action Plenty of changes Could be 20% of standard portfolio

2. Active management Pointers for a Successful Active Equity Portfolio be consistent in one’s area of expertise; maintain investment philosophy and composure while others are panicking minimize the trading activity of the portfolio to avoid large commissions careful “stockpicking” - looking at individual issues to find undervalued stocks

3. Asset allocation strategies Integrated Asset Allocation capital market conditions + investor’s objectives  to an optimizer which determines the optimum portfolio Revises often. Changes policies on the 60-40 …sometimes goes to 80-20 or 90-10.

4. Integrated approach Market conditions and Investor Objectives feed into the Asset Mix. Returns are generated. Feedback loop back to the client. The asset mix is always shifting in response to changes in the client or the market. 60-40 or 80-20, depending…. Capital Market Conditions Investor objectives and constraints Asset Mix Returns

5. Integrated Works well in any market Constant adjustments to market conditions, and changes in client. 60% ??