An Index for the NAAIM Game

By Nancy R. Mandell

Commentary March 02, 2009 at 07:00 PM

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NAAIM, the National Association of Active Investment Managers, has launched the Actively Managed Fund (AMF) Index comprised, currently, of 21 funds managed by some of NAAIM's 200-member firms. The organization, the non-profit trade group representing RIAs dedicated to active trading and portfolio management strategies, plans to report live AMF Index performance on a monthly basis on its Web site, www.NAAIM.org, sometime during the first quarter.

The organization claims that over the two-year period ending Dec. 31, 2008, the funds in the AMF Index cumulatively outperformed the S & P 500 by more than 16% and the Morningstar tracked mutual fund universe (less money market and bond funds) by more than 14%.

Asserting that the AMF Index demonstrates the superiority of active versus passive management–regardless of market mood–and "especially in sideways and bear markets," NAAIM President Will Hepburn adds, "It is not only what investments, but when to invest and how, and when to remain on the sidelines that makes the difference.

Ronald Rowland, president of Capital Cities Asset Management and chief administrator of the NAAIM AMF Index, noted that "Recent market turmoil is reflected everywhere, and these funds are no exception, but when compared to the industry as a whole," he continues, "the NAAIM funds performed remarkably well, confirming the effectiveness of active management strategies–both for funds and for customer portfolios."

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