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.