Morningstar, the investment research provider, put the finger on the weak spot. Its latest findings on the UK fund market show that the number of "closet tracker" funds that charge high fees for active management – while in reality they simply follow an index - has more than doubled in the UK in the last 12 months.
Quoted in last Sunday's edition of the Financial Times' FTfm, Guillaume Prache, Managing Director of BETTER FINANCE, explained how BETTER FINANCE is taking action and going further by pressuring ESMA to do the same. Following our request for a Europe-wide investigation into closet tracking in October, ESMA decided to" gather information". We are now demanding that ESMA make the results of its exercise public since falsely-active funds are part of a bigger problem: the excessively high cost of investing in Europe.
Please read FT’s article here (subscription required).