French asset managers have become the latest in Europe to face a probe into their investment practices – as France’s financial watchdog confirms it is "conducting further analysis" into potential closet tracking in the country’s €3.3 trillion asset management industry.

The Autorité des Marchés Financiers told Financial News its decision was motivated by a separate investigation by the European Securities and Markets Authority, which earlier in 2016 warned that one in six supposedly active equity funds sold across the EU could, in fact, be a closet indexer.