Appendix 1
Glossary
This glossary does not repeat definitions and explanations of concepts that are provided in the main text, for example in Chapter 2 (terms relating to behavioural finance) and chapters in Part 2 (for terms relating to equity markets, credit markets, hedge funds, private equity and real estate). For references to these, please consult the index.
| Active management | Investment strategies of active investment managers who are appointed in the expectation or hope that they will perform better than the market as a whole, after allowing for the extra fees paid for active management. These strategies always involve avoidable turnover (compared with a passive or market matching strategy) and the avoidable risk of underperforming ... |
