Active Management

(redirected from Actively managed)

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 ?
The actively managed ETF, FTSM's investment adviser is First Trust Advisors LP, a federally registered investment adviser.
American Century Investments, a global asset management firm, has announced it has filed for exemptive relief for actively managed, semi-transparent exchange-traded funds (ETFs) using Precidian Investment's ActiveShare methodology, the company said.
Because target-date funds are so incredibly important to a retirement plan advisory practice serving defined contribution plans, and because the debate between actively managed and passively managed funds continues to heat up as lawsuits centered around fees abound, we decided to take a look at flows into passively managed vs.
They've nearly erased the once-massive advantage held by actively managed funds, which currently have a total of $3.77 trillion in assets.
It is a diversified, fixed income, actively managed ETF that aims to deliver current income and capital appreciation with a focus on managing risk.
Broadridge's data showed that half of actively managed institutional funds assets came from retail channels: registered investment advisors, broker-dealers and online.
But in late November, Vanguard stepped partially out of its well-established comfort zone and jumped on the actively managed ETF bandwagon here in the U.S.
the right to use the New York Stock Exchange's methodology for operating an actively managed, periodically disclosed exchange-traded fund.
"That's because any actively managed appreciation that accumulates on investments can be considered marital property, which means your spouse could wind up with a big chunk of it--that is, if you were to later divorce." Newman sees this mistake most often among individuals who retire and decide to start playing around with their investments.
Advisors invested client assets in actively managed funds in the first half of 2017, but net new flows were driven entirely by low fee and institutional priced share classes, according to data released today by Broadridge Financial Solutions, Inc.
Retirement plan committees are increasingly selecting passively managed funds for their 401(k) plan investment menus, in many instances to replace actively managed funds.
Specifically, plan fiduciaries have been increasingly concerned that offering actively managed funds might unnecessarily raise scrutiny from the U.S.