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 ?
ASX has created mFund for investors, brokers and fund managers in order to boost settlement speeds and to reduce costs of investing in managed funds.
The cautious managed sector will now be divided into two; cautious managed funds (with a total equity limit of 60 per cent) and the new addition, defensive managed funds (with a total equity limit of 35 per cent).
The company is a leader in managed funds and forex, full-service brokerage, trader education, research, and direct, online futures trading through BEST Direct, the first platform to deliver retail orders to the CME's Globex engine.
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As investors have sought more choice in funds, it was inevitable that index funds would start looking like managed funds, and vice versa, but the situation is complicating their decisions," says Blayney.
Securities and Exchange Commission (SEC) has today issued an order (Order) granting Eaton Vance and related parties an exemption from certain provisions of the Investment Company Act of 1940, as amended, to permit the offering of exchange-traded managed funds.
Conversely, the rationale behind passively managed funds is the 'efficient market hypothesis'.
Summary: MENA 10th Forex, Managed Funds & Investment Opportunities' conference will be held on 15-16 November 2012 at Jumeirah Beach Hotel in Dubai.
Harina Company Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), has made an investment in AMP Capital managed funds.
4 million sqm for the quarter across the Group and managed funds, representing A$42.
This makes them the first managed funds with such diverse asset allocation to get S&P fund rating in the GCC, said a statement from Emirates NBD.
Balanced managed funds returned pounds 7693 and a 90-day notice account pounds 6666 on average.

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