Active fund management

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.
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A report by financial services firm bfinance earlier this year showed that active fund management fees are also falling, with the average fee quoted by global equity managers now around 57 bps compared with 62 bps in 2015.
93 trillion yen) under management, Nikko Asset Management is one of Asia's largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies.
The need is increasing for a highly skilled active fund management team with truly global resources, and experience in different regions of the world.
First, based on their analysis of the six years of performance from 2002 to 2008, they concluded that active fund management adds no value to an investment portfolio.
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.
As the markets, including global stock markets, became more efficient due to increased computerized trading, online trading, and improved global communication, the benefits of active fund management are questionable.
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.
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.