Seneca's Elston: The myths and misunderstandings behind active share

Re-evaluating fees and benchmarks

The issue of closet tracker funds charging high fees for poor performance has been a recent gripe of the Financial Conduct Authority, writes Peter Elston, CIO of Seneca Investment Managers.

It is a primary concern for them as they seek fairer outcomes for investors, with the intention of forcing these funds to make it clearer that they are in some way constrained.  Gosling's Grouse: Closet compensation This is in line with the industry's recent embrace of active share as a crucial tool for identifying genuinely actively managed portfolios. However, while much has been written about active share, it is still in many respects a misunderstood measure. The principle behind active share is to measure the difference between a fund and the benchmark index it is seeking to...