Index managers are all simple to define
where as active managers are diverse and a difficult to group and further group into sub groups to make a meaningful assessment.
As an active manager with a distinct style playing in a pretty small sandbox — the Canadian marketplace — our objective remains to do better than the overall market.
As active managers try to provide superior returns, they tend to trade more often and more aggressively than passive managers.
I wonder how much of the data with the inflows / ourflow chart changes from active to index, is the movement from active managers which were plus or minus 5 - 10 % of the index in their holdings (what I refer to as a dressed up index fund being
marketed as an active manager).
«Blended implementation combines the two approaches by investing in both low cost index funds as
well as active managers to gain select market exposures,» he explains.
William Sharpe showed how any purported superiority of active management as a group can only be «justified by assuming that the laws of arithmetic have been suspended for the convenience of those who choose to pursue
careers as active managers».
In this case, we can safely guess that trading activity may not be as regular as a passively managed fund,
as an active manager attempts to time the market.
Both Stromberg and Sullivan said they expect passive investing to remain an important part of their business, but think the trend will
slow as active managers begin to beat benchmarks again.
Stay Active:
As an active manager, we have the ability to take advantage of changing market conditions and exercise our patient, long - term approach.
As active managers have struggled to keep up with the market indices, more and more investors have moved to index products and quant - based strategies.
As active managers, we believe active strategies can reduce risk and add alpha over time.
As active managers, we have raised our cash levels looking for opportunities in a sloppy market, particularly in our China Region Fund (USCOX).
As active managers, we are always longer or shorter by at least half a year and by at most two years.
As an active manager, we believe that concentrated, long - term, oriented portfolio is the best way to produce market - beating returns over time.
If we relied solely on commercial indices assigned by Morningstar, then we may form a false conclusion that Franklin Templeton has the «secret sauce»
as active managers.
And you certainly
as an active manager of some of your funds, they've won all sorts of awards, you've beaten your benchmarks, so you're succeeding as an active manager.
If we relied solely on commercial indices assigned by Morningstar, then we may form a false conclusion that Prudential has the «secret sauce»
as active managers.