Active Management

(redirected from Actively Manage)

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 ?
For clients who actively manage their investment accounts, Newman has one piece of advice for when they remarry: stop trading immediately.
An additional bene t for SMEs who actively manage their VAT position is the reduction in the risk of errors arising which can create additional liabilities reducing the cash available for the business to invest.
* 233 readers (42.8%) reported that they actively manage labor using both amniotomy and oxytocin
* If you do not want to actively manage a property and want to do a tax-deferred transaction, consider other low-risk real estate investments such as single-tenant net lease deals.
Used together or separately, Microsoft FRx and Microsoft Forecaster provide the financial visibility you need to actively manage your business and take decisive action.
Jeff Weiss and Jonathan Hughes (1) argue that to maintain and foster collaboration an organization must accept and actively manage conflict.
EAP professionals must be prepared to actively manage service delivery systems.
Rather, it means we must accept and actively manage the following:
Grants of up to $10,000 are available to property owners who actively manage their land for rare species.
"The Tivoli Adapter is consistent with Keynote's overall application performance management strategy which gives enterprise customers the ability to leverage their existing IT investments in software and hardware to actively manage the total performance of their e-business systems."
She exemplifies why it is important for African Americans to actively manage their finances.
The statement that "some health care providers can have 60 to 90 days in receivables, thanks to slow-paying HMOs that actively manage their cash gaps by delaying payments" is uncalled for in a professional publication.