Investors see lower net returns from potential closet index funds

Funds

Date: 09 October 2020
On 9 September 2020, the European Securities and Markets Authority (ESMA), published a Working Paper on Closet Indexing Indicators and Investor Outcomes.  The study finds that investors can expect lower net returns from closet indexers than from a genuinely actively managed fund portfolio. A summary of this study was also included in the Trends, Risks and Vulnerabilities report published on 2 September.