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 ?
Some of our actively managed portfolios ended 2017 up 10-12 per cent, a clear outperformance," noted Naqvi.
Both of these factors work well for us as our investment expertise offers strong returns and more actively managed portfolios that are tailored to each client.
Tier two holds the core menu, where investors are free to choose their own asset allocation; choices may include actively managed portfolios, passive strategies or both.
We hope that the introduction of actively managed portfolios will increase trading volumes overall and raise levels of investment liquidity.
The new options join the four existing asset allocation options already offered on the JH Signature platform, including our existing "to" and "through" retirement target date options, JH Lifestyle actively managed portfolios as well as the Guaranteed Income for Life Select portfolios.
Actively managed portfolios aim to deliver a return that is superior to a set benchmark.
Actively managed portfolios seem to pursue a higher average maturity.
Sponsors should look at the recent declines in value indices and actively managed portfolios as an opportunity to take advantage of a potentially historic trend reversal.
There is little evidence that actively managed portfolios successfully overcome the negatives you attribute to index funds: Contrarian strategies do hot consistently beat momentum.
Stadion's actively managed portfolios may underperform during bull markets.
Management Risk: The Funds are subject to management risk because they are actively managed portfolios.
The actively managed portfolios continue to deliver solid, long-term performance through multiple market cycles.