Active Management

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Active Management

The opposite of passive management. The passive manager simply minimizes the tracking error of their portfolio and a well known index (e.g. S&P 500 index mutual funds). The active manager will deviate from the benchmark weights by (i) varying the weights from the benchmark weights on the securities; (ii) adding securities outside the benchmark or choosing not to hold securities included in the benchmark and (iii) time-varying asset allocation where weights on certain asset classes change through time. The goal of active management is to produce a return that exceeds the passive return with minimal risk.

Active Management

The practice of a money manager or a team of money managers making investment decisions on what securities to include in a mutual fund or portfolio. Sometimes active management exists within certain parameters; for example, money managers may only buy blue-chip stocks for a certain fund and growth stocks for another. The basic premise of active management, however, states that the managers can maximize the return for investors by buying or selling securities on a fairly regular basis. See also: Passive management, Indexing.
References in periodicals archive ?
a leading provider of active investment management solutions working with 600 independent broker dealers around the country, has once again been named one of the Largest Money Managers in the region by Crain's Detroit Business for the second consecutive year.
a leading provider of active investment management solutions working with nearly 600 independent Broker Dealers and RIAs around the country, is pleased to announce the promotion of Michelle Higgins to Operations Manager.
DENVER, May 2, 2013 /PRNewswire/ -- The National Association of Active Investment Managers (NAAIM) released today a groundbreaking new white paper designed to showcase the advantages of active investment management and the limitations of the debate related to active vs.
DENVER -- The National Association of Active Investment Managers (NAAIM) announced today the speakers and agenda for its 35th annual conference, Uncommon Knowledge.
TSE officials said active investment by foreign investors and individual investors making use of online brokers helped boost trading in the month.
President Sweeney said," "We're incredibly proud that the BIT is increasing its commitment to active investment in America's cities.
The inference is, properly selected, active investment advisers have the answers to produce results the average person can't possibly attain.
George Yang, CFA, is the 2013 third-place winner of the NAAIM Wagner Award for Advances in Active Investment Management for his paper, "Filtered Market Statistics and Technical Trading Rules," as announced by the National Association of Active Investment Managers (NAAIM) last week.
Russell indexes are widely used by managers for index funds and as benchmarks for both passive and active investment strategies.
April 18, 2013 /PRNewswire/ -- The National Association of Active Investment Managers (NAAIM) announced today that Dave Klein is the 2013 first-place winner of the NAAIM Wagner Award for Advances in Active Investment Management for his paper "Equity Sector Rotation via Credit Relative Value".
Other firms affiliated with IXIS Asset Management Advisors Group include Active Investment Advisors3; AEW Capital Management; Capital Growth Management; Caspian Capital Management; Delafield Asset Management4; Hansberger Global Investors; Harris Alternatives; Harris Associates; Loomis, Sayles & Company; Managed Portfolio Advisors3; Portfolio Management Partners3; Reich & Tang Asset Management; Snyder Capital Management; Vaughan Nelson Investment Management; and Westpeak Global Advisors.
23, 2012 /PRNewswire/ -- The National Association of Active Investment Managers (NAAIM) has announced the call for papers in the 2013 Wagner Award paper competition.

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