Orbis' Brocklebank: We welcome the rise in passives

Shone a light on 'closet trackers'

Tom Eckett
clock
Dan Brocklebank of Orbis Investments
Image:

Dan Brocklebank of Orbis Investments

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

  • 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

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Trustpilot