Date: 5th October 2016
Author:
Type: In the news
On February 2nd ESMA released some long awaited results of its investigation on falsely active equity UCITS funds (also called “closet indexers”). Those are funds that claim to be “actively” managed but that are in fact merely following market indices, although they charge much higher fees than low cost index-tracking funds such as ETFs. The distribution of such funds as “active” funds is very misleading to the investor and causes detriment because the investor is paying for a service that he is not actually receiving.
Please find the press release here.