Dedicated Portfolio

A passive form of portfolio management that involves the matching of future cash flows with future liabilities.


The process of dedicating a portfolio may be used as an alternative to multiperiod immunization. Since the portfolio is usually comprised of investment-grade instruments, there is usually no need to rebalance the portfolio. Additionally, the payments are almost always guaranteed.



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Related Terms

Active Management

Immunization

Investment Grade

Passive Management

Portfolio

Portfolio Management

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