In what would be a fightback against the tarnishing of active investment management by managers who hug indices and overcharge, Natixis Global Asset Management – one of the 20 largest asset managers in the world – is considering a plan to publish the ‘active share’ figures for its Luxembourg-domiciled equity funds.
Euan MacLaren, head of UK/Ireland institutional business at Natixis, says the company is “exploring the idea” of including active share data for its Luxembourg equity funds.
“I strongly believe active managers need to stand up and fight their corner,” he says in the latest issue of Funds Europe.
Active share is a measure of the extent that a portfolio deviates from its benchmark. Those with a low active share may be accused of index-hugging.
Index-hugging has been brought to light more and more over the past two years by the likes of Cass Business School. Various research studies show that many active managers fail to outperform their benchmarks after fees because they closely follow the benchmark composition of stocks.
The article also reports that the Investment Association is carrying out research into the economic benefits of investment management and that the research is set squarely in the context of the rise in passive investment.
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