Dymott's Digest: Coming out of the closet

These 'closet indexer' funds that simply track the index, delivering at best index performance but, at higher costs than passives, are once again hitting the headlines. This is clearly an issue for investors, and I would entirely agree, that if a customer is not paying either for alpha, or for an investment outcome which is different than merely tracking the index, then there is a significant issue of value. This is a problem that will surely run for some time, and the threats of legal action, however challenging it would be to win, will see many product providers sit up and listen. ...