Closet Index Funds: a contribution to the debate in Europe

The possible existence of closet index funds, is an important matter for financial regulators, including the AMF, both in terms of financial information and investor protection. Today the AMF is keen to contribute to the European debate and analysed nearly 800 French funds using a method based on fund return and market data. It enables more funds to be examined than was previously possible, especially through a holding-based approach. This approach does not relieve the regulator of carrying out an in-depth individual analysis of the funds flagged as least active in the sample.