Alpha Tag

Proponents of the passive, index-tracking approach to equity investing often make their case ­­­by underlining the efficiency of stock markets. This is especially true of the US, where research and the speed with which information is translated into price movements can make stock selection a pointless exercise.

The introduction of transaction cost disclosure was intended to provide greater transparency. However, with an utter disregard for common sense that characterised MiFID2’s generally inglorious introduction, the regulators provided fund managers with two diametrically opposed calculation methodologies. As a result, fund managers, ACDs, data providers and platforms have between them contributed to organisational chaos.