To help you navigate through the findings of our replication of the ESMA study on Closet Indexing and to help you verify the status of your investment, Better Finance provides guidelines to help interpret the information available.
List of the 6% of funds that do not report any benchmark in their prospectuses according to Morningstar, making it impossible to provide the metrics used by ESMA to identify potentially falsely active funds.
List of the 50% of funds that do report a benchmark but apparently do not provide enough information for Morningstar to compute the metrics selected by ESMA for those funds.
List of the 36% of funds that are sufficiently transparent (with regard to ESMA metrics in the Morningstar database) and that – based on those metrics – do seem to be truly active.
List of the 7% of funds (and up to 16 % of the sufficiently transparent funds) that show characteristics that flag them as being potential closet index funds according to ESMA.
A selection of clippings from media covering the Closet Indexing Study