Active Share is a portfolio metric used to determine how much a fund’s holdings differ from its benchmark index. It reveals whether a portfolio manager is truly pursuing an active strategy or simply “hugging” the index while still charging active-management fees. A higher Active Share means the portfolio is taking distinct positions, while a lower score indicates strong overlap with the benchmark. For investors, it’s an essential tool for evaluating the value and authenticity of active...

Overlay management is an advanced investment technique used by institutional investors, asset managers, and pension funds to adjust portfolio exposures such as currency, interest rate, or equity risk without altering the underlying holdings . It allows investors to fine-tune risk and return profiles through derivatives or other overlay strategies while maintaining the integrity of the core portfolio. What Is Overlay Management? Overlay management refers to the practice of using a separate...

The Core-Satellite Strategy is a popular investment approach that blends the stability of passive investing with the potential for...