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What is active share in mutual funds?

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What is active share in mutual funds?

Active share is the fraction of a fund’s portfolio holdings that deviate from the benchmark index. The active share of a mutual fund ranges from zero (pure index fund) to 100% (no overlap with the benchmark).

What is active share investing?

Active Share measures the fraction of a fund’s portfolio (based on position weights) that differs from the benchmark index. In this example, the fund has an Active Share of 40%. The remaining 60% is considered the passive share representing the portfolio’s holdings and weights that directly overlap with the benchmark.

Who owns Touchstone mutual funds?

Includes assets under management by Fort Washington Investment Advisors, Inc. of $68.3 billion and $4.4 billion in commitments managed by Fort Washington Capital Partners Group, a division….Share this article.

AIG FUND EXISTING TOUCHSTONE ACQUIRING FUND
AIG Focused Alpha Large-Cap Fund Touchstone Large Cap Focused Fund

Is active share the same as tracking error?

ACTIVE SHARE VERSUS TRACKING ERROR Active share is calculated based on actual portfolio holdings (not returns) as of a specific point in time (not over time). Although active share and tracking error are positively correlated, it is possible for low- tracking-error managers to maintain a high active share.

Why is active share divided 2?

Dividing by 2 ensures that Active Share takes on a value between zero and 100%, so it can be read and interpreted as follows: Active Share = the % of stock holdings in a fund that differ from those in the index. differences would be 200%; dividing by 2 reduces the calculation in this extreme example to 100%.

What does active share tell?

Active Share is a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index. The researchers conclude managers with high Active Share outperform their benchmark indexes and Active Share significantly predicts fund performance.

Does active share include cash?

GSAM’s methodology for calculating Active Share: (1) excludes cash, bonds, warrants, rights and derivatives (except futures); (2) includes, for equity holdings, the derived notional exposure to the underlying constituents of equity index futures or exchange-traded funds held by the portfolio; (3) aggregates holdings at …

What does an active share of 0% mean?

Active share measures how much an equity portfolio’s holdings differ from the benchmark index constituents. At the extremes, a portfolio with no holdings in common with the benchmark would have 100% active share, while a portfolio that is identical to the benchmark would have 0% active share.

Does AIG offer mutual funds?

Effective July 16, 2021, Touchstone Investments, a wholly owned subsidiary of Western & Southern Financial Group, acquired select assets of AIG Life & Retirement’s Retail Mutual Funds business. AIG Life & Retirement is a division of American International Group, Inc. (NYSE: AIG).

What was a touchstone used for?

Touchstone, black siliceous stone used to ascertain the purity of gold and silver. Assaying by “touch” was one of the earliest methods employed to assess the quality of precious metals. The metal to be assayed is rubbed on the touchstone, adjacent to the rubbing on the touchstone of a sample of a metal of known purity.

Who is the CEO of Touchstone mutual fund?

Their expertise, disciplined investment processes and employment of active management provide the differentiation required for a robust approach to portfolio construction. Tim Paulin of Touchstone speaks with Martijn Cremers, one of the thought leaders responsible for introducing active share, about the importance of active share.

What is the expense ratio of a touchstone mutual fund?

The average expense ratio from all mutual funds is 1.20%. 56.59% of all the mutual funds are no load funds. The oldest fund launched was in 1934. The average manager tenure for all managers at Touchstone is 8.04 years.

Where is Touchstone investments located in Providence RI?

Touchstone Investments c/o BNY Mellon Asset Servicing P.O. Box 9878 Providence, RI 02940-8078

What does active share mean on a prospectus?

Definitions. Active Share is the percentage of fund holdings that is different from a benchmark’s holdings. The Active Share displayed in this panel is computed relative to the primary benchmark declared in the fund’s prospectus (i.e., the Prospectus Benchmark ).