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Active position (active money) meaning
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What does Active position (active money) mean?
In investment management, an active position is a portfolio manager’s deliberate choice to hold more or less of a security, sector or asset class than its weight in the agreed benchmark index. The aggregate of such deviations is sometimes described as active money. The term is descriptive market usage, not defined in legislation or case law, but is widely used in investment management agreements, fund prospectuses and client reports across England & Wales, Scotland, Northern Ireland and Ireland.
Active positions (overweights and underweights) are central to active management. They drive benchmark-relative performance and are commonly constrained by mandate limits (for example, maximum +/- exposures by issuer, sector, country or duration) and monitored using risk measures such as tracking error or active share.
Legally and contractually, active positions must sit within the strategy’s stated investment objective, investment restrictions and applicable regulatory limits (including UCITS/AIFMD rules and MiFID II client agreement requirements). Exceeding agreed limits can trigger breach handling under the mandate or fund documents, including remediation and investor or depositary notifications where required. The extent of active positions is also relevant to performance fee mechanics, benchmark selection, and performance attribution, and is scrutinised by clients, trustees and regulators in assessing closet tracking and...
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View the related News about Active position (active money)
NEWS
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Read More View the related Practice Notes about Active position (active money)
PRACTICE NOTES
England and Wales Civil Court Pilot Schemes Tracker: Online Claims, Document Access, Case Management and ADR
This Tracker outlines the active pilot schemes currently operating within the civil courts. For details of pilots that have concluded, see Practice Note: Dispute Resolution—pilot schemes which have ended. Key dates and essential details for each pilot are set out below. This information reflects current position within the civil courts. Online court Pilot scheme Damages claims pilot scheme—CPR PD 51ZB Key dates: 28 May 2021 to 1 October 2026 Details: CPR PD 51ZB pilots an online procedure for County Court damages claims where parties act through a legal representative. Claims are handled via the Damages Claims Portal. The scheme covers damages-only claims in the County Court (for example, personal injury, clinical negligence, breach of contract), subject to specific exceptions. For further guidance, see Practice Note: Damages claims pilot scheme—CPR PD 51ZB. Online Civil Money Claims Pilot—CPR PD 51R Key dates: From 7 August 2017 to 1 October 2026 (to be extended to 6 April 2027 by...
28 May
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