Dedication Strategy

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Dictionary Says

Definition of 'Dedication Strategy'

A method by which the anticipated returns on an investment portfolio are matched with estimated future liabilities. A dedication strategy is frequently used in pension funds and insurance company portfolio to ensure that future liabilities can be met. An institution, such as an insurance company, can estimate future liabilities and try to minimize its outlay to satisfy future liabilities through its anticipated investment earnings.

Also called portfolio dedication, cash flow matching and structured portfolio strategy.

Investopedia Says

Investopedia explains 'Dedication Strategy'

A dedication strategy involves cash flow matching so that investment earnings will provide funds for anticipated future capital outlays. Pension funds and insurance companies can fairly accurately predict future liabilities, which tend to be large. Their portfolios typically include low-risk, investment-grade securities, such as medium- or high-rated bonds, that allow for fairly predictable earnings to match to projected future capital outlays.
Search results for

'Dedication Strategy'

  • How To Outperform The Market

    http://www.investopedia.com/articles/basics/04/020604.asp
    ... buy and sell at the extremes, the more aggressive - and risky - is his or her strategy. ...
    It is a blend of science and art that requires patience and dedication. ...

  • How Small Businesses Can Best Use Social Media - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/How-Small-Businesses-Can-Best-Use-Social-Media.aspx
    ... Thing as an Overnight Success It takes hard work, time and dedication to develop ...
    The Bottom Line An effective social media strategy is often more about quality ...

  • Short Selling: Why Short? | Investopedia

    http://www.investopedia.com/university/shortselling/shortselling1a.asp
    ... ll discuss later, very few sophisticated money managers short as an active investing
    strategy (unlike Soros ... It involves a great amount of time and dedication. ...

  • Building An Emergency Fund

    http://www.investopedia.com/articles/pf/05/EmergencyFund.asp?partner=worldnow
    ... the present to start saving, even if you don't have the dedication to address ... Using
    the same strategy year after year may be comfortable, but it's not always ...

  • Manage My Own Investments? Are You Kidding?

    http://www.investopedia.com/articles/stocks/08/invest-on-your-own.asp
    ... attempt to sabotage your effort and the endeavor will require time and dedication. ...
    you in a unique position to tailor your investment strategy more precisely. ...

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