Active fund management

Active fund management

An investment approach that purposely shifts funds either between asset classes (asset allocation), sectors (sector rotation), or between individual securities (security selection) in order to seek superior returns.

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 ?
As the markets, including global stock markets, became more efficient due to increased computerized trading, online trading, and improved global communication, the benefits of active fund management are questionable.
It leads inevitably to investors asking why they should pay for active fund management when it clearly isn't working for many.
"We think that there will be a lot of demand, because exposure of international investors to this region is still behind the curve," he said, adding that the fund will provide "exposure and passive management in an efficient way, when active fund management has taken a hit."
Finally, the investment managers should be selected using a core of index tracking funds complemented by active fund management where appropriate.
The program then allows a choice of active fund management, quantitative (passive or index funds), or a blend.
Also, an active fund management is being sought for the liquidity of the Financial Instrument, as has been the case for the Financial Mechanism.
By definition, active fund management requires substantial buying and selling of shares: dividend income is dwarfed by the potential for gains arising from price fluctuations.
We're told because they offer round-the-clock consultation to savings plan investors and more active fund management than competitors, their costs in small, rural southern states where they have no overhead are greater than in Manhattan.
Aberdare-born Mr Holtham made his name in the City of London as chief investment manager for Morley Fund Management - the UK's second biggest active fund management company - where he was responsible for managing assets of more than pounds 125bn.
As one of the region's most active fund management companies, NEL has been called upon many times to highlight the difficulties that regional SMEs face in plugging the `funding gap', generally caused by a restricted supply of start-up and expansion finance.
But Standard & Poor's Mr Guy Boden argues that a tracker fund can actually be seen at least a risky as active fund management for investors keen to avoid the risks inherent in individual shares or sectors of the market.