There is no ‘right’ or ‘wrong’ money management style. There are only investment philosophies and objectives – all of which vary based on preference.
Unlike other investment advisors, Starlight Portfolios believes investors should have the option to choose the investment management style that best fits their needs. The following provides an overview of each style, to give you a better understanding of the differences to help with identifying which style is a best fit for your financial situation.
The active management style is geared towards an investor who values a fund manager’s attempt to outperform the fund’s target or that of a benchmark. The active manager relies on analytical research, forecasts, personal judgment and experience with making investment decisions, to guide the choice of buying, holding or selling securities. Actively managed investments are typically accompanied by higher fees than that of passive or blend managed funds.
The passive fund manager’s objective is to have the fund mirror the risk and return performance of an index or benchmark. The passive manager’s goal is not to outperform the market, but to keep pace with the benchmark.
As the name suggests, blend management is a combination of active and passive management strategies. Blend management is a good fit for an investor who wants the benefits of both active and passive management strategies. Blend management provides a balance between meeting performance objectives and obtaining pricing efficiency.
To view the hypothetical performance of each of investment management style with Starlight Portfolios, please visit the Portfolio Performance page on our website.