Is your active fund really a Closet Tracker_

Is your active fund really a Closet Tracker?

Regulatory Insights, Regulatory Reporting

Closet trackers, also known as closet indexing or index hugging, refers to the practice of fund managers claiming to manage portfolios actively when in reality the fund stays close to a benchmark. The issues around ‘closet trackers’ form part of a broader issue on the effectiveness of investor disclosure and the legitimate expectations of investors in respect of the service provided by some asset managers.