News 19 Dec. 2019
Curtis Wins in London for Federal Airports Authority of Nigeria
News 18 Apr. 2016
Curtis gains recognition in new Africa publication
News 26 Feb. 2020
Curtis Secures Comprehensive Victory for the Republic of Kazakhstan’s Committee of Roads
News 24 Jan. 2020
Curtis defeats $400 million investment treaty claim brought against India
News 26 Jun. 2020
Curtis wins Arbitration Team of the Year 2020 at Italy’s prestigious Legal Community Awards
Client Alert 16 Jun. 2020
Germany Insight: German Government Approves Comprehensive EUR 130 Billion Stimulus Package to Reverse Economic Damage from COVID-19 (Coronavirus) Pandemic
Article 02 Jul. 2020
Partner Antonio Prida and associate Irene Cuellar publish article on mediation in the National Autonomous University of Mexico’s legal magazine, "Opiniones técnicas sobre temas de relevancia nacional"
Event 24 Jun. 2020
Partner Gabriela Alvarez Avila Speaks on ISDS at ASIL 2020 Virtual Annual Meeting
News 24 Jun. 2020
Curtis defeats second treaty claim brought against Kuwait
Event 31 Jan. 2020
Partner Antonia Birt Speaks at 5th Annual GAR Live Abu Dhabi
Client Alert 06 Jul. 2020
U.S. Insight: U.S. Supreme Court Holds That Adding “.com” To A Generic Word Can Make The Combination Eligible For Trademark Protection
Event 09 Jun. 2020
International Associate Luis Carlos Ramírez Martínez speaks on ProColombia webinar about the Effects of COVID-19 on International Trade
Publications 09 Jun. 2020
Luis Carlos Ramírez Martínez publishes "COVID-19 terminaría impulsando el comercio internacional" in asuntos:legales
News 27 Apr. 2016
Funds Partner Marc V. Kramer and Frankfurt office funds associate Agata Zdunek were quoted extensively by Institutional Money, a leading publication for institutional investors in the D-A-CH region (Germany-Austria-Switzerland), in an article titled “Hunt for Index Huggers” published very recently in edition 1/2016.
Active Share is a measure of the percentage of stock holdings in a fund manager's portfolio that differ from the fund’s benchmark index and can be useful in identifying so called "closet indexers" (“index huggers”), i.e. managers who claim to be active but whose portfolios are very similar to the benchmark portfolio. Identifying closet indexers is important because active management fees can be a significant hurdle to outperforming the index for anyone holding a portfolio similar to its benchmark.
With ESMA, the EU’s Securities and Markets Authority, steadily increasing its supervisory work on potential closet index tracking and German securities regulator BaFin even going beyond ESMA by recently launching special inspections with mutual fund managers in Germany, Mr Kramer describes possible legal consequences from detected closet indexing such as, inter alia, administrative fines by BaFin and prospectus liability towards investors.
Marc Kramer points out, “Regulators in the EU and in Germany have started to define Active Share and to determine criteria for identifying closet indexing with no indications available yet of what the outcome will be.” he notes that fund managers in Germany appear pretty aware by now and finally have put Active Share on top of their internal agendas. He further comments: “Interestingly, in Europe - primarily in the Nordic countries and in Poland but now also in Germany - closet indexing seems to be a bigger issue than in the United States”. According to Mrs Zdunek, any deviation from the investment program and strategy described in the prospectus of a mutual fund may make its manager vulnerable as to closet indexing.
Marc V. Kramer
Agata J. Zdunek