Active Management


Also found in: Wikipedia.

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 assets contributed to the partnership included working interests in oil and gas properties, which require active management. At formation, $438,000 of approximately $2.5 million in assets were oil and gas properties; approximately 71% of the oil and gas interests were working interests.
According to Touchstone Investments' white paper, A Measure of Active Management. "After developing the concept of Active Share, Cremers and Petajisto performed a study to see whether Active Share had any bearing on the relative performance of domestic all-equity mutual funds," the white paper reports.
Tax-awareness affects the selection of professional money managers and mutual funds, as well as whether to use a passive investment or active management strategy.
Active management with exposure to european small cap stocks with the ftse developed europe small cap index or the msci europe small cap index.
Active management also has its benefits in a rising rate environment from a global perspective, according to Moore.
The firm focuses on the construction and management of real estate securities and portfolios (REITs and CMBS), high-yield direct equity and debt investing, and the active management and repositioning of direct property portfolios.
As long as the son continued in the active management of the company, the son retained the right to vote all of the company's stock.
Contract notice: market 2018frr02 responsible active management mandates: european and french small caps
professional investors believe actively managed strategies work best in falling markets, according to results from the MFS Active Management Sentiment study released on Monday.
"Active management is behind us, not in front of us," Charles Ellis told RIAs Thursday morning in a session kicking off the sixth annual Think Retirement Income conference in Boston.
Two years ago the owner assumed active management of the regional shopping center.
The concept alternatives will also consider the management of tule elk in the planning area, ranging from elimination, to active management, to expansion of the Drakes Beach herd.