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 ?
CGOC's main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.
FTSM is subject to management risk because it is an actively managed portfolio.
In the coming quarter it is important to remain invested in a well-diversified and actively managed portfolio to benefit from the mild upside potential in equity markets as foreseen by HSBC, and attractive carry opportunities in credit and emerging markets bonds.
In the coming quarter, it is important to remain invested in a well-diversified and actively managed portfolio to benefit from the mild upside potential in equity markets we foresee, and attractive carry opportunities in credit and emerging markets bonds.
Chief Executive Simon Perkins added: "The growth delivered across all key metrics is a direct result of the carefully selected and actively managed portfolio that we have built up over recent years, combined with our ability to enhance and release its potential, which has resulted in rental and capital uplifts out-performing the market over the period.
They will also use an actively managed portfolio but are moving into passive index-oriented options as well.
the nmc anticipate allocating between 40 000 000 70 000 000 gbp between appropriate suppliers through an actively managed portfolio of investments.
CGOC's investment objectives are to provide holders of common shares long-term total return through capital appreciation by investing in an actively managed portfolio of securities of public and private companies operating in, or that derive a portion of their revenue or earnings from, products or services related to the cannabis industry.
Griffin Institutional Access Real Estate Fund, a closed-end interval fund registered under the Investment Company Act of 1940, is an actively managed portfolio of private real estate funds and public real estate securities, diversified by property type, geography and fund manager, offering daily pricing and periodic liquidity at net asset value.
It is an actively managed portfolio [and] that actively managed portfolio will continue to improve."
Commenting on the launch of actively managed portfolio services in Palestine, Barraq Nabulsi, Director General of the PCMA,observed, "The PCMA looks at current market needs and beyond as we seek to diversify available investment tools on the Palestine Exchange (PEX).
A relatively new measure when evaluating portfolio managers is that of Active Share which looks at the extent to which the holdings in an actively managed portfolio differ from those of a market index.