Financial Education

The core-satellite approach typically anchors the overall portfolio using a core portfolio that is typically either indexed or an enhanced index portfolio linked to the overall asset class benchmark.

Around this core portfolio, the investor selects satellite managers for portions of the fund based on the manager’s expertise. The satellite portfolios may have the same benchmark, or constitute specific styles within the benchmark.

For more information, see all articles on: Active Management, Asset Allocation, Institutional Investing, Investing in Stocks, Passive Management, Portfolio Management

See also:

Approaches to Equity Investment

The Top Down Approach to Security Selection

Portfolio Selection, Composition and Implementation in Portfolio Management

Choosing a Fixed Income Manager

Micro Performance Attribution: Fundamental Factor Model