Active fund management


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Active fund management

An investment approach that purposely shifts funds either between asset classes (asset allocation), sectors (sector rotation), or between individual securities (security selection) in order to seek superior returns.

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 ?
Now in his 70s, Rogers made a big enough pile to be able to retire from active fund management at 37.
But his assumption is backed up by a good deal of independent research, which does show that low-cost passive investing beats active fund management over the long haul.
Hume Capital is an independently owned UK investment firm specializing in active fund management.
It leads inevitably to investors asking why they should pay for active fund management when it clearly isn't working for many.
We think that there will be a lot of demand, because exposure of international investors to this region is still behind the curve," he said, adding that the fund will provide "exposure and passive management in an efficient way, when active fund management has taken a hit.
Conversely, proponents of active fund management can point to the asset weighted averages.
Finally, the investment managers should be selected using a core of index tracking funds complemented by active fund management where appropriate.
The program then allows a choice of active fund management, quantitative (passive or index funds), or a blend.
Also, an active fund management is being sought for the liquidity of the Financial Instrument, as has been the case for the Financial Mechanism.
By definition, active fund management requires substantial buying and selling of shares: dividend income is dwarfed by the potential for gains arising from price fluctuations.
We're told because they offer round-the-clock consultation to savings plan investors and more active fund management than competitors, their costs in small, rural southern states where they have no overhead are greater than in Manhattan.