What does the term ‘active management’ mean for investors?

UK investors looking for expert help with their portfolios often come across the term “active management”. In this blog, we’ll look at what this service involves and what benefits it can bring.

How active management works

Active management refers to an investor, a wealth management team, or other financial professionals continuously monitoring an investment portfolio’s progress and performance. While observing and tracking, investment managers make selling, buying, and holding decisions about the assets contained in the portfolio.

What is the aim of active management?

The ambitions of any investment manager is always to outperform a set target while simultaneously achieving additional objectives like balancing risk, meeting ESG standards or reducing tax consequences. While all active managers share these goals, how they accomplish them can differ greatly.

Active managers may depend heavily on forecasts or in-depth investment research and analysis for their decision making. This can include the use of quantitative tools, backed up by their years of experience and professional judgment that ultimately helps them making selections on the most suitable assets classes to sell or buy. While some managers may use a discretionary approach, others may opt for strictly algorithmic strategies.

Are you looking for active management for your investments?

If you need experts in portfolio management for Chester and Shropshire, our team at Hartey Wealth Management can help. We combine active and passive investment strategies to create diverse portfolios that balance risk and return. For expert assistance and active management, get in touch today to discuss your current portfolio.


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