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 ?
LONDON (Alliance News) - Deutsche Boerse AG said Friday its post-trade services provider Clearstream has acquired National Australia Bank Ltd's managed funds service Ausmaq Ltd.
a) national funds combined with EU centrally managed funds, such as the InvestEU Fund or 'Seal of Excellence' projects provided for by the next framework programme on research and innovation;
Pharmaceutical company Cardiome Pharma Corp (NASDAQ:CRME) (TSX:COM) reported on Friday the launch of a first amending agreement under its amended and restated term loan agreement with CRG Servicing LLC (CRG) managed funds (the Amending Agreement).
equity and international equity funds, while almost $7 billion flowed out of actively managed funds, which was far less than outflows in the previous two years.
Summary: Investment bank held controlling stake through two of its managed funds
BANKING AND CREDIT NEWS-August 16, 2017-Brandes Investment Partners to introduce exchange-traded managed funds
Of these TDFs, actively managed funds were the most popular, at 41.6%; index funds were used by 20.6% and custom funds by 11%.
There is a Lou Costantino who is a former Merrill Lynch lobbyist who is now the (https://www.managedfunds.org/about-mfa/people/mfa-management-team/louis-costantino-jr/) top lobbyist for the Managed Funds Association - a major trade association for the hedge fund and private equity industries.
What's more, this new focus on investment costs has been at least partially responsible for the $506 billion that flowed into ETFs and index funds in 2016, while, according to Morningstar, $341 billion flowed out of actively managed funds. That's unfortunate: It's far from an established fact that at least some actively managed funds don't deliver value to investors in excess of their higher fees.
Retirement plan committees are increasingly selecting passively managed funds for their 401(k) plan investment menus, in many instances to replace actively managed funds.
Global Banking News-July 14, 2016--UBS to launch NextShares exchange-traded managed funds
5 October 2015 - US-based finance company MidCap FinCo Ltd., in partnership with other Apollo managed funds and affiliates, has signed an agreement with Mubadala GE Capital to acquire substantially all of Abu Dhabi-based MGEC's loan portfolio of primarily corporate and real estate loans in the US and Europe with total assets of USD 3.6bn (as of 30 June 2015), the company said.

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