Active Fund Management

A fund managers style of investment management which seeks to attain returns above a set benchmark (such as an index) by asset allocation and selection of securities within each asset class. These fund managers aim to achieve outperformance either by selecting specific stocks which they expect to do well, or by timing their purchases of shares, i.e. aiming to buy shares just before the market rises and sell shares just before the market falls (market timing). Fees charged by active fund managers are higher than those charged by passive fund managers.