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Last Trade - 06/05/21

Large Cap
Market Cap £24.48bn
Enterprise Value £56.71bn
Revenue £5.06bn
Position in Universe 31st / 1838

Regulator raps DNB unit over management of active fund

Fri 13th March, 2015 5:09pm
OSLO, March 13 (Reuters) - Norway's financial watchdog has 
criticised DNB Asset Management, a unit of Norway's biggest bank 
DNB  DNB.OL , for marketing one of its funds as active when it 
had in fact performed close to its benchmark. 
   Regulators across Europe are closely watching so-called 
'closet indexing', where a fund charges an active management fee 
but tracks the holdings and performance of the index against 
which its returns are benchmarked. 
    "In Finanstilsynet's assessment the company's management of 
the fund has diverged considerably from what the investors were 
led to expect," Norway's Financial Services Authority (FSA) said 
in a statement on its website dated March 11. 
    "The equity fund concerned has performed very closely to its 
benchmark, but is marketed and priced as an actively managed 
fund. Finanstilsynet considers this to be censurable and counter 
to good business practice," it said. 
     The FSA compared Verdipapirfondet DNB Norge with the DNB 
Norge index fund, which until May 2013 used the same benchmark 
index, but had a management fee of 0.3 percent versus 1.8 
percent for Verdipapirfondet DNB Norge. 
    A DNB spokesman said no one had lost money investing in DNB 
Norge. "On the contrary, consumers had a solid return on 
investments of almost 45 percent over the past five years."   
    Oslo's main index  .OSEBX  had a return of 67 percent over 
the last five years. 
    Denmark's regulator said almost a third of funds it studied 
were suspicious, while Swedish investors have filed a complaint 
against Swedbank Robur over two of its funds. Europe's markets 
watchdog is looking into the issue and Britain's may 
follow. ID:nL6N0TG2Y9   ID:nL6N0OG2PN  
 (Reporting by Stine Jacobsen; additional reporting by Simon 
Jessop; editing by Susan Thomas) 
 ((stine.jacobsen@thomsonreuters.com)(+47 23 31 65 98)(Reuters 
Messaging: stine.jacobsen.thomsonreuters.com@reuters.net)) 
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