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 ?
Why is active investing critical to success in Russia?
This merger unites American Independence's management expertise and proud tradition of active investing with FolioMetrix's progressive approach to investment management research and portfolio design," saidRiskX CEO John Pileggi, who previously served as Managing Partner of American Independence.
Ang will lead BlackRock's expansion in the emerging field of active investing via exposure to different risk premiums.
As you may have heard, investors have swung heavily toward passive investing and away from active investing over the last few years.
This active investing system has taken 17 trades in 2014 so far.
If you favour active investing, or stock-picking, the volatility among the stocks in the S&P500, FTSE 100 or even Eurostoxx 50 indices will leave you spoiled for choice.
As Qatar is very active investing their resources to every corner of the world, Indonesia will be a perfect destination for the Middle East heavyweight investor.
Despite slow government liquidity, yet active investing in portfolios and funds was able to prevent the bourse's indices from going downwards.
In 1991 he uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio of 76 properties in his first twelve months of active investing.
In active investing, you invest in a broad array of stocks (or bonds), trying to pick individual stocks you think will do better than the rest.
The degree programme will help our students develop a deeper understanding of active investing.

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