Page 21 - DIY Investor Magazine | Issue 41

a voice to hold leadership teams to account. Julian explains, “It’s a reminder to management teams that somebody’s watching, somebody’s judging, somebody owns them. We’re holding them to account.”
The managers can express any concerns directly to the most senior people in the business and potentially influence how proceedings are run, ensuring best standards are adhered to. That’s a powerful means of driving change where necessary. As passive funds do not have managers overseeing them in the same way, there is no sense of active ownership or the ability to create change.
THE COST OF ACTIVE MANAGEMENT
All this thought and analysis does contribute to the cost of active management, which is generally higher than
for a passive fund. That cost is deducted from a fund’s performance which means the investor won’t then take home all the performance gained. It would be prudent for any investors considering active management to look carefully at the fund’s costs.
Brunner’s managers have worked hard to keep costs down for investors. Because a holding in an investment trust
is the same as any listed
‘REINFORCES BRUNNER’S share, the share price paid
CAPACITY TO HELP by an investor includes the
INVESTORS TO PROTECT effects of the management
AND GROW THEIR WEALTH charges as well as other
FOR THE LONG TERM’ operating expenses.
Investors will still pay whatever fee is levied by their chosen investment platform or stockbroking service of course.
Don’t forget, there is a cost to most passive investments too, even if they are generally quite modest. All investment products will come with an element of cost somewhere.
PROTECT AND GROW WEALTH
Brunner’s active approach allows for flexibility in response to changing market conditions, so managers can enter
and exit holdings at a time that they hopefully feel is right. This constant focus on global markets and company performance reinforces Brunner’s capacity to help investors to protect and grow their wealth for the long term. Whilst there might be a higher cost to active management, we believe that in the long run that cost can contribute to opportunities for investors.
MORE INFORMATION ON BRUNNER INVESTMENT TRUST HERE
REALITIES OF THE ENERGY TRANSITION
LISTEN HERE
“A MULTI-DECADE RE-ENGINEERING OF THE
ENTIRE GLOBAL ECONOMY” – Julian Bishop, co-lead portfolio manager of Brunner debates the realities of the energy transition with host Joe Lynam. He argues that the production of nearly everything in the world relies on fossil fuels to some degree, something that will inevitably take time to change. The duo also examine the tie in with global population size and growth, look at whether energy in general and renewable energy in particular contains opportunities for investors, and draw their conclusions
on the ultimate realities of the energy transition”.
1Net of fees means fees have been deducted. In other words, the trust has still outperformed benchmark even after the cost of fees has been deducted.
Disclaimer:
This is a marketing communication. A ranking, a rating or an award provides no indicator of future performance and is not constant over time. Past performance does not predict future returns.
21 DIY Investor Magazine
· August 2024