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Active or Passive?

Judgement-led or rules-led? Two different ways to decide what a portfolio owns

KTTF pursues an active management approach to your investments

Active & passive funds may hold many of the same investments, but how they decide what to own, when to change it & what work investors pay for differs considerably

This is a simplified, educational explanation to increase understanding of alternative investment management approaches. This is not a comparison to determine which approach is better in general or for your specific circumstances

Use the toggle below to see how each approach answers the same investment questions

The Key to the Future uses an active management approach managed by Peregrine & Black XXX

Choose us to actively manage your investments with KTTF

    Building the portfolio • Active

  • Who decides what gets into the portfolio?

    Investment professionals decide

    The manager or investment team research investments then decides what to buy, how much to hold, and when to sell. The portfolio reflects their expertise, judgement, and investment process

    How selective can the portfolio be?

    Managers can choose exactly what to own

    Within the agreed strategy, the manager can favour investments they consider attractive, avoid others, and hold different proportions of specific asset classes than the wider market

    • Managing market news & changes • Active

  • What happens when markets change?

    Managers decide whether to change the portfolio

    The manager can adjust holdings when markets, valuations, risks or opportunities change. This flexibility may help manage risk, but active decision-making doesn't guarantee an improved outcome

    What happens when a company causes concern?

    Managers can engage directors and / or divest

    The manager may challenge company leadership, vote, reduce the holding or sell if financial, ethical or sustainability concerns are not resolved adequately

    • Cost, expertise, and outcomes • Active

  • What are investors paying for?

    Research, oversight, and discretion

    Charges are generally higher because investors pay for professional research, ongoing monitoring, portfolio construction, and regular investment decisions

    Who has the greatest influence on results?

    Manager decisions matter most

    Performance depends more heavily on the manager’s research, expertise, judgement & discipline. Good decisions may add value, while poor decisions combined with higher costs can lead to underperformance

    Building the portfolio • Passive

  • Who decides what gets into the portfolio?

    A chosen index sets the rules

    Holdings are mainly determined by an index or fixed methodology. Professionals operate the fund, but they do not usually decide whether each individual investment should be included or excluded

    How selective can the portfolio be?

    The portfolio owns what the index includes

    The portfolio generally holds the investments determined by its index. This can provide greater diversification, but may include companies the fund manager would not actively choose

    • Managing market news & changes • Passive

  • What happens when markets change?

    Portfolio holdings change only if the index changes

    The portfolio typically only changes when the index changes or its rules require rebalancing. This limits reactive decisions, but means the fund will generally follow the market through both rises & falls

    What happens when a company causes concern?

    Engagement is limited & usually keep holding

    Passive managers can vote & engage with companies, but an index-tracking fund may need to remain invested while the company continues to be included within its index

    • Cost, expertise, and outcomes • Passive

  • What are investors paying for?

    Efficient access to a market

    Charges are generally lower because the holdings follow an established index or methodology rather than continually researching & selecting investments

    Who has the greatest influence on results?

    Market condtioins & index choice matter most

    Performance is mainly driven by the market being tracked & how the index is constructed. Results should remain close to the index after charges, trading costs, and tracking differences

Why share ownership should come with more responsibility

What active investment management means in practice for KTTF, and why your portfolio does not simply follow an index with our approach

How we actively oversee your investments within KTTF

Talk to us about investing with KTTF

Choosing not to look is still a choice

Your portfolio has global impact... positive or negative

Your investments are more than just numbers on an annual statement. How you invest your money can finance businesses, reward corporate behaviour, and allow you to profit from harmful activity if you do not consciously make decisions to exclude certain investments

Where your money goes matters not just to your family, but also to all people in all countries as well as the natural world & environment around you

Increased international transparency requires greater responsibility for our actions. We live in a globally-connected world. The 21st Century faces the greatest challenges to survival for humanity & the planet

Most people would not knowingly choose to support environmental damage, exploitative labour practices or other harmful activity… but if investors allow their hard-earned income to buy into investments without checking what they are investing into, then your money could flow towards outcomes you would never want to endorse

Invest consciously, not passively

KTTF is actively managed to look beneath fund labels to identify avoidable harm, challenge managers, and favour investments with credible potential to support a fairer & more sustainable economy

We cannot guarantee perfect outcomes or zero exposure (no-one can!), but we can choose to continuously investigate, engage, and act rather than remain silent or indifferent

We act for you, so you can invest with peace of mind

Invest conciously with KTTF

See how we recommend a suitable portoflio style for you

Watch how lower-risk to higher-risk portfolio styles impact portfolio construction & behaviour

Track the changes in asset mix, holdings, stability, volatility, and growth potential

Discover why your circumstances & objectives could mean we recommend a portfolio different from your initial preference

Learn how we select investments matched to your needs & goals

Compare Portfolio Styles
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