Active Management

(redirected from Active Strategy)

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 ?
Newbridge is one of four leisure centres - not including Pontllanfraith - that the council wants to keep and develop as part of its 10-year sports and active strategy.
Beyond pursuing organic growth opportunities, HDI Global Specialty SE will pursue an active strategy identifying new teams, portfolios of business and mergers and acquisitions.
A more active strategy to accumulate reserves will help build external buffers and strengthen Guineas resilience to shocks.
There are goods or bads in both weak economy and strong economy, BabyTree' listing is an active strategy. As the flagship of maternity and child, BabyTree is an excellent company that is counter-cyclical and anti-interference."
KARACHI -- Experts on water and environmental issues warned on Thursday of potentially disastrous consequences Pakistan faced owing to increasing water scarcity, a problem, they said, which had intensified owing to India's active strategy to control and manage water resources and the fast changing climatic patterns.
He said that the university was following an active strategy to counter important issues.
falciparum is even more devious than previously thought: not only does it hide from the body's immune defenses, it employs an active strategy to deceive the immune system.
The active strategy, called Insight, is made up of funds that seek to outperform the market over the long term, and Impact prioritizes funds that meet socially responsible investing criteria without sacrificing returns.
GQG Partners' active strategy adjusts the Fund's portfolio in changing market conditions and seeks to take less risk than--but still outperform--comparable international funds over a full market cycle.
Saudi Arabia's Vision 2030 is an adequate example of a government that has embraced an active strategy to engage with its citizens as well as with the international community by thoroughly explaining and laying out its future plans and related expectations.
"Time Hotels has been committed to pursuing an active strategy of initiatives, events and programmes designed to engender a pro-sustainability culture across all our properties and in the communities in which we operate.
However, a prudent active strategy comes into play when carefully utilizing passive ETFs as investment tools to provide clients with an appropriate allocation of currency-hedged ETFs and unhedged ETFs.