UK CLOSET INDEXERS TO INDEMNIFY FUND INVESTORS ALMOST FOUR YEARS AFTER BETTER FINANCE ASKED THE EUROPEAN SUPERVISOR TO INVESTIGATE THE ISSUE

Good news at last for some investors caught in “closet index” funds: fund managers will indemnify investors from 64 UK domiciled funds for £ 32 million following the UK financial supervisor’s investigation. Closet index funds are funds that claim to be actively managed, and charge “active” management fees, but closely track the market indices (before fees), more or less like index funds (that charge much lower fees).
In 2014, BETTER FINANCE asked the European supervisor for a Europe-wide investigation of the closet indexing problem after the Danish financial supervisor raised this issue locally.

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