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 ?
Recognizing that need and translating it into active strategy is investing in the future of Palestinian children and their resilience to challenges," said World Bank Country Director for West Bank and Gaza Steen Lau Jorgensen in the statement.
Ultimately, the acid test for choosing an active strategy is whether the investor believes the active manager can beat a passive strategy over a full market cycle, net of fees," Mr.
May 20 (SeeNews) - Belgian power grid operator Elia (EBR:ELI) will not pursue for now any active strategy for external growth but would rather seek to improve its profitability by investing in existing activities in Belgium and Germany, local daily De Tijd reported on Tuesday.
Speaker noted the importance of laying down an active strategy for boosting political, legislative and parliamentary cooperation and exchanging visits, with the aim of coordinating on confronting terrorism.
We have received increased commitments from our long time partners who have invested with GC Equity Partners Fund II and from new partners who have believed in the firm's disciplined and active strategy, as well as the performance of the team that has yielded our investors a net IRR of over 25 percent, in value, as of today.
The ancillary cafe development let to Costa for 15 years, follows an active strategy which included refurbishing the office reception and common parts, letting a ground floor suite to EUM, taking back additional space from a tenant, refurbishing and re-marketing.
He stressed the state's keenness to combat narcotics by adopting an active strategy to make Sudan free of illegal drugs.
An active strategy, however, takes a position on market direction and seeks to profit while keeping risk at a minimum.
It is part of an active strategy to take the Liverpool city centre club into the new era of business with India and south east Asia.
He stressed state's keenness to combat narcotics by adoption of an active strategy to make Sudan free of drugs, calling for intensification of the cultural and sports activities for youths .
During the meeting, al Toobi touched on the main aspects of the strategy of the tourism sector promotion and development in the Sultanate within the policies and the five-year developmental plans set by the government to enhance the opportunities of the tourism sector sustainability to achieve the economic and social development by preserving the environment, its natural resources and the historic, civilizational and cultural heritage of the Omani society, as well as, pursuing an active strategy to promote the Omani tourism product via participating in global tourism exhibitions.
Leicester supporters might have hoped for a more active strategy in this transfer window because without fresh impetus a midtable finish looks on the cards.