Asset Management

Nomura raises concerns over Esma closet indexing probe

Japanese bank has its own suggestions about the best way to measure how active fund managers are

Nomura raises concerns over Esma closet indexing probe

Japanese bank Nomura has penned a report flagging concerns over the recent “fixation” on a fund's active share, warning that it could distort the European Securities and Markets Authority’s probe into the extent of closet indexing.

The European focus on closet indexers - fund managers which charge active fees while effectively tracking the index - has sharpened in recent months. In November Esma confirmed it was on a fact-finding mission to "assess the scope of this issue".

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