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 firm actively manages portfolios in both the public and private property markets.
Within the Titan Growth Portfolio, unitholders will continue to benefit from the active asset allocation process employed by the Connor, Clark & Lunn Asset Allocation Team which actively manages the asset allocation of the Portfolios, constantly monitoring, and when needed, adjusting the asset mix to take advantage of, or protect against, current and approaching trends in the domestic and global markets.
Titan Funds employs the Connor, Clark & Lunn Asset Allocation Team to actively manage the asset allocation of Titan Managed Portfolios, including the Titan Growth Portfolio.
Founded in 1981, Boston-based AEW creates and actively manages direct investments in real property on behalf of large institutions, including corporate, labor union and government pension funds, university endowment funds and the RTC.
Pentech Actively Manages Energy-Consuming Assets To Ensure Energy And
Savings of this magnitude are very compelling for operations executives and their CFO's, yet few companies can afford the dedicated personnel required to actively manage these systems to realize the savings," said Lynn Fryer, director of the energy information and communication practice for E Source.
OTCBB: CTPI), a public company that acquires, integrates, and actively manages Internet service and infrastructure companies, today announced that it has made a first round investment in LiveSky Solutions Inc.
State Street Research, founded in 1924, actively manages stock, bonds, and balanced portfolios for institutional and retail investors.
The Boston-based company, with offices in San Francisco, London and New York, actively manages equity, fixed-income and balanced portfolios for both institutional and mutual fund investors.
Based in Minneapolis, Norwest Venture Capital actively manages $500 million in current investments.