Guillaume Prache on "closet indexers"

Guillaume Prache, Managing Director at BETTER FINANCE, was quoted on www.efinancialnews.com on the high fees fund managers charge for active management while effectively following much cheaper passive strategies.

UK and European financial regulators are now taking matters further after an investigation by the Danish financial services authority found nearly 30% of fund management teams that may have been engaged in so called “index hugging”.

Mr. Prache stressed that “the probability of potential dangers for investors in much bigger domiciles in Europe” related to this practice, makes it a “duty for ESMA to follow suit.”

Please read the full article here.