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 ?
Still, by year-end the total assets of actively managed funds stood at $11.
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Wellington-based managed funds platform InvestNow has acquired the Managed Funds product line of RaboDirect, the specialist online savings business of Rabobank New Zealand Limited, following a robust vetting and selection process by Rabobank.
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Retirement plan committees are increasingly selecting passively managed funds for their 401(k) plan investment menus, in many instances to replace actively managed funds.
Summary paragraph: Let's clear up any confusion about actively managed funds
Conversely, the rationale behind passively managed funds is the 'efficient market hypothesis'.
Net new flows of European actively managed funds totaled #x20AC;30 billion ($39.
Summary: MENA 10th Forex, Managed Funds & Investment Opportunities' conference will be held on 15-16 November 2012 at Jumeirah Beach Hotel in Dubai.
Harina Company Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), has made an investment in AMP Capital managed funds.
This makes them the first managed funds with such diverse asset allocation to get S&P fund rating in the GCC, said a statement from Emirates NBD.

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