Orbis' Brocklebank: We welcome the rise in passives

Shone a light on 'closet trackers'

Tom Eckett
clock • 2 min read

Dan Brocklebank, UK director of Orbis Investments, has said the dramatic rise in passives over the past few years has been positive in shining a spotlight on active funds, which are effectively "closet trackers".

Speaking at the Professional Adviser 360 event, Brocklebank said some of the actions within the active community had not been constructive for clients meaning they had shifted their assets towards passives. Last month, the Financial Conduct Authority (FCA) announced a number of asset managers had taken the step of paying £34m in compensation to investors who overpaid for 'closet tracker' funds following an investigation by the regulator. "In many areas, clients have been paying active fees for not very active funds and passives have shone a light on this which, for consumers, is healt...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ETFs

European asset managers using Taiwan as testing ground for active ETFs

European asset managers using Taiwan as testing ground for active ETFs

Race for active ETFs hots up

Linus Uhlig
clock 23 June 2025 • 3 min read
Active ETFs defend stewardship capabilities in face of shareholder engagement crisis

Active ETFs defend stewardship capabilities in face of shareholder engagement crisis

Record number of active ETF launches in 2025

Sorin Dojan
clock 18 June 2025 • 6 min read
Goldman Sachs AM expands ESG range with active green bonds ETF

Goldman Sachs AM expands ESG range with active green bonds ETF

TER of 0.55%

Sorin Dojan
clock 18 June 2025 • 2 min read
Trustpilot