Orbis' Brocklebank: We welcome the rise in passives

Shone a light on 'closet trackers'

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...