The insight behind Cremers' Active Fee is that when actively managed funds
hold stocks that are also held by their benchmark, that fund's investors could get that same exposure by simply buying that index, at a cost that presumably would be substantially lower than that of the actively managed fund
bond managers can beat the benchmark, but it may take a higher level of skill to overcome the actively managed fund
Thus, if plan fiduciaries study the facts and circumstances-by employing a prudent decisionmaking process-and conclude that an actively managed fund
, despite being more expensive, is likely to achieve greater returns or prone to be less risky than a lower-cost, passively managed fund, they should feel comfortable offering the investment.
An actively managed fund
has a more hands-on approach and would make regular use of market timing and stock picking.
The investor will pay lower charges than what he would have to pay for an actively managed fund
,' said managing director Krishnamurthy Vijayan.
The former is an actively managed fund
with a 150% annual portfolio turnover rate.
A EXISTING customers will be able to invest more but in the longer term a closed fund may not do as well as an actively managed fund
Among actively managed fund
categories, taxable bond funds were the clear winner.
NextShares are a new type of actively managed fund
designed to provide better performance for investors.
Mawazeen is an actively managed fund
that may be suitable for investors looking to make an asset allocation into global equity and fixed income markets, and benefit from potential enhanced risk adjusted returns.
On the other hand, the average actively managed fund
, according to Lipper, grew substantially, in some cases by more than 50 percent.