“We are supportive of the FCA highlighting areas of weakness within the industry, but want to stress that the reputation of all active fund managers should not be damaged by the small number of firms running so-called ‘closet trackers’,” he said.
“A clear trend over the last five years has emerged showing partially active funds being squeezed between passives and high active alpha funds.
“This has occurred due to the greater availability and transparency of data enabling comparison of measures such as tracking error, active share and charges. Intervention by the FCA to reinforce these pressures is not required.”
