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 improvement was a reflection of a relatively benign risk environment as well as effective active portfolio management.
Overall, active portfolio management will bring a net cash outflow of around EUR1.
The sale of Jacobs' interest in Neste Jacobs Oy aligns with the company's strategy outlined last year to grow profitably by executing a balance of organic growth, acquisitions and active portfolio management that positions Jacobs in the most attractive end markets and geographies.
With this next step of active portfolio management, we continue to shift ABB's center of gravity, in line with our Next Level strategy, by strengthening competitiveness, mainly in the North American market, and lowering risk with an early-cycle business.
The active portfolio management, new business initiatives, and financial discipline we employed in recent years-supported by a healthy domestic economy-continue to bolster Ayala's growth trajectory,' Ayala president and chief operating officer Fernando Zobel de Ayala said in a press statement.
It describes statistical models and methods for quantitative trading, active portfolio management and investment strategies, econometrics of transactions in electronic platforms, limit order book data analytics and dynamic models, optimal execution and placement, market making and smart order routing, and informatics, regulation, and risk management.
Zacks Advantage Institutional will help advisors give small to medium-sized clients active portfolio management on an automated platform.
ABB will continue to strengthen its divisions through active portfolio management.
Another viewpoint illustrates the difficulty of active portfolio management, especially over the long-term, which in turn helps measure the worth of investing with the best managers.
With that insight, banks, insurance companies, warehouse lenders and other institutions can determine whether to buy, hold, originate, monitor or sell a CRE loan as part of an active portfolio management strategy, said DebtX Chief Executive Officer Kingsley Greenland.
Sahem Trading & Investments Company (Sahem)on Wednesdayannounced the launch of Palestine's first active portfolio management service by certified financial advisors for equity investors in the Palestinian capital market.
With that insight, banks, insurance companies, warehouse lenders and other institutions can determine whether to buy, hold, originate, monitor, or sell a CRE loan as part of an active portfolio management strategy.