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 ?
A statement from the firm said, 'With two decades of crypto experience between them as well as subject matter experts across global capital markets and venture capital, the team is well-poised to deliver exceptional returns for investors through an actively managed portfolio of crypto assets.
A non-diversified, closed-end management investment company, the fund aims at a high total return with an emphasis on current income by investing in an actively managed portfolio of companies.
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).
Objectives : The fund will aim to generate long-term capital growth from a diversified and actively managed portfolio of high-growth companies with technology and/or industrial content which enjoy distinct competitive advantages.
AASF offers investors access to an actively managed portfolio of professionally selected hedge funds through a single investment that is designed to complement long-only investing portfolios.
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.
The fund is to invest in an actively managed portfolio comprising mainly North American publicly traded equity securities, with long-term capital appreciation as its investment objective.
This is institutions, endowments, pensions, corporations, and other sophisticated investors that seek to take advantage of market volatility with actively managed portfolio strategies.
However, on a short-term view, we believe that an actively managed portfolio of Japanese equities offers a cost-effective way of gaining access to growth in Asia, particularly as Japan has lagged the broader Asian equity market indices by a very considerable margin this year.
Summary: Dow Jones Indexes, a leading global index provider, announced today that the Dow Jones Islamic Market (DJIM) India Index has been licensed to HSBC Asset Management India Ltd, to serve as a benchmark of an actively managed portfolio.
Performance attribution analysis examines differences in performance between an actively managed portfolio and a benchmark.