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 ?
The Fund seeks to provide shareholders with a vehicle to invest in an actively managed portfolio of companies that may benefit from the developing U.
A relatively new measure when evaluating portfolio managers is that of Active Share which looks at the extent to which the holdings in an actively managed portfolio differ from those of a market index.
Developed by SSGA and CBRE Clarion Securities, a leading investment manager specializing in real estate and infrastructure securities, the Fund seeks to deliver attractive income and growth potential through an actively managed portfolio of publicly-traded companies that primarily own and operate commercial real estate and derive a majority of their revenue from rental income.
Developed by SSGA and CBRE Clarion Securities, an investment manager specialising in real estate and infrastructure securities, the fund aims to deliver high income and growth potential through an actively managed portfolio of publicly-traded companies that primarily own and operate commercial real estate and derive a majority of their revenue from rental income.
The actively managed portfolio will consist of 40-60 best ideas unconstrained at a country and sector level, and will target incremental value above the MSCI global emerging markets index," the company said.
However, on a short-term view, we believe that an actively managed portfolio of Japanese equities offers a cost-effective way of gaining access to growth in Asia, particularly as Japan has lagged the broader Asian equity market indices by a very considerable margin this year.
Summary: Dow Jones Indexes, a leading global index provider, announced today that the Dow Jones Islamic Market (DJIM) India Index has been licensed to HSBC Asset Management India Ltd, to serve as a benchmark of an actively managed portfolio.
Performance attribution analysis examines differences in performance between an actively managed portfolio and a benchmark.
an actively managed portfolio of predominantly debt-oriented hedge funds.
Commenting on the strategy's bottom-up fundamental research approach, portfolio manager, Jim Boothe, says, "We believe an actively managed portfolio consisting of companies with both sustainable and growing dividend policies may provide meaningful long-term total return.
HSBC Equity Fund, an open ended diversified equity scheme, has an actively managed portfolio of equity and equity related securities.