What is the National Association of active investment managers (Naaim)?

The National Association of Active Investment Managers or NAAIM was formed in 1989 as a non-profit association of registered investment advisors who provide active money management services to their clients, in order to produce favorable risk-adjusted returns as an alternative to more passive, buy and hold strategies.

What is the difference between an active manager and an investor?

An active manager uses an index as a reference point for assessing performance or risk in an actively managed stock fund. An investor selects only investments that are included in a specific index, but exclude an investment based on research into the sustainability of the company behind the investment.

What is active management?

The term active management means that an investor, a professional money manager, or a team of professionals is tracking the performance of an investment portfolio and making buy, hold, and sell decisions about the assets in it.