Active Management

(redirected from Active Strategy)

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 ?
KARACHI -- Experts on water and environmental issues warned on Thursday of potentially disastrous consequences Pakistan faced owing to increasing water scarcity, a problem, they said, which had intensified owing to India's active strategy to control and manage water resources and the fast changing climatic patterns.
He said that the university was following an active strategy to counter important issues.
GQG Partners' active strategy adjusts the Fund's portfolio in changing market conditions and seeks to take less risk than--but still outperform--comparable international funds over a full market cycle.
Time Hotels has been committed to pursuing an active strategy of initiatives, events and programmes designed to engender a pro-sustainability culture across all our properties and in the communities in which we operate.
So while the SEC has been reviewing different proposals from active managers, a big difference in what can be developed still exists between an index and active strategy.
In 2009, Rocco Forte Hotels launched Verdura, the company's first resort on the island of Sicily and has an active strategy for future expansion into new European destinations and other global markets, with a Shanghai hotel set to open in 2018.
in 2015 through September, 21 followed smart beta strategies and seven followed an active strategy.
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.
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.
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.