Active Management Return

Finance
Collared FRN
January 30, 2023
Derivatives
Artificial Options Activity
January 30, 2023

The return which is earned by an actively managed portfolio in excess and over an average market return (benchmark).

Active management return= actual portfolio return – benchmark return

It is usually expressed in basis points. For example, it could be 500 basis points, which means that the portfolio in question has outperformed the benchmark by 500 bps.

It is also known as a value-added return.

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