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 ?
First Eagle is an independent investment management firm dedicated to active investing, with approximately USD 116 billion in assets under management as of September 30, 2017.
Traditional active investing has felt pain across nearly every major active equity strategy.
With active investing, you face a complex array of choices--different strategies, different managers, unpredictable tax consequences, costs many times that of index funds and a history of below-average returns.
Their alternative strategy is really to look beyond stocks and bonds, increase the reputation of active investing, and strengthening their back office infrastructure," he said.
It is a fantastic place to work, and I had no difficulty finding examples of Active investing in its employees in all aspects of the business.
Plus, there is no definitive evidence suggesting active investing can outperform a passively managed portfolio of low-cost index funds.
Another popular form of active investing involves renting out a home or condo for the income.
Cremers has taken that one step further with the introduction of the "Active Fee" calculation, which quantifies the value to investors of successful active investing.
In contrast, active investing selects a benchmark and then uses a strategy to outperform the market.
Founded by one of the nation's most prolific and successful real estate investors, NV Companies is the flagship of resources from education to active investing.
The merger unites Turner's existing 26-year legacy of active investing with Veracen's proprietary operating platform and disciplined investment process.
An overview of the companys global economic outlook was presented, along with its active investing strategy amid increasingly volatile markets, and approach to researching and selecting investment managers across strategies and asset classes.

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