Active Management

Active Management is a discipline in Fund Management which covers a wide range of Securities. The objective is to maximise portfolio returns by actively researching and trading a portfolio of securities.

The Active Management of a Fund, bonds or stocks or a multi asset portfolio, requires constant management of the underlying securities in order to maximise gains. An Active Manager could employ a range of Investment Strategies, quantitative tools or subjective decision making in security analysis by researching and forecasting a company’s financial position, placing a Valuation. The analytical tools ultimately lead to deciding the Asset Allocation and which assets to buy and sell. There are limits imposed as set out in the Fund’s Prospectus. Active Management is a discipline. The Management Fee will be higher. The opposite would be Index Tracking.