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 ?
Summary: As the risk of asset bubbles bursting next year rises, 76% of those surveyed said 2018 will favour active management
Indeed, it has been a tough stretch for active management.
Indeed, for the last few years, passive investing has bested active management.
com)-- Peter Bohr, the CEO of Active Management Nor, while announcing the launch of the Fund said "Active Management Nor has continued to address the growing need of investors who are looking for wealth creation over the long term.
A total of 100 patients were included in the study, out of which 50 patients under went active management of third stage of labour (AMTSL) and 50 patients had expectant management.
The City of Atlanta and ADID, with funding from the Georgia Department of Transportation (GDOT), desire to partner to support the active management of traffic signal operations within Downtown Atlanta.
A situational analysis was conducted regarding the current practice of active management of the third stage of labour and the management of eclampsia in 30 of the 42 busiest public birthing facilities in Cambodia.
1) The International Federation of Gynecologists and Obstetricians (FIGO) and the International Confederation of Midwives (ICM) recommend that vaginal singleton births routinely receive active management during the third stage of labor: Birth attendants should administer the correct dose of a uterotonic drug within one minute of fetal delivery, provide controlled traction of the umbilical cord and fundal massage after delivery of the placenta, and perform uterine palpations every 15 minutes for two hours afterward.
The original joint Statement promoting active management of third stage was drafted by FIGO with assistance from ICM Head Office in 2003, as part of the Safe Motherhood program, to try and reduce the numbers of maternal deaths in the developing world (International Confederation of Midwives and International Federation of Gynaecologists and Obstetricians, 2003).
vPro with active management technology and the latest hardware security standard.
Through active management, leasing and refinancing of undervalued properties" added Arthur, "we believe we can create enhanced returns for potential institutional investors in the Fund".
ST's new Serial Flash IC supports the Intel 82573E PCI Express* Gigabit Ethernet Controller, featuring Active Management Technology, and the Intel 945Express chipset family with the 82801GB and 82801GR I/O Controller Hub.