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Key points in the speech were:
“In the case of retail investment funds, costs are fairly constant and not as variable as gross returns. Hence, investors take an extra hit in case of overall lower gross returns.
and
“The new ESMA Q&As adopt a broad definition of ‘benchmark referencing’ UCITS funds. The obligation for a wider range of funds to show past performance of the benchmark should allow investors to better evaluate investment choices of active funds against passive funds, and reduce the possibilities of adopting closet indexing strategies.”