ESMA study finds high impact of costs on performance, especially for active equity funds


Date: 18 December 2019
On 27 September 2019, the European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, carried out a study of the performance of active equity funds as compared to passive equity funds, ETFs and relevant benchmarks. The study, included in the latest Trends, Risks and Vulnerabilities (TRV) report finds that actively managed funds have in past years underperformed, in net terms, both passive equity funds and equity ETFs, as well as their own benchmarks, primarily due to the large impact of ongoing costs.