University of Leeds calls for investment disclaimer reform

Little impact

A paper from the University of Leeds has suggested the standard investment disclaimer is not fit for purpose.

Research from the university found the investment standard disclaimer 'past performance does not guarantee future results' had little impact on the decision-making of most participants. The team tracked the investment decisions made by around 1,600 individuals in mutual funds over 60 simulated months. In a press release, the university said the disclaimer "backfired for participants with no previous stock market experience, who instead chose to base their decisions on high management fees". The rationale for investing in funds with higher fees was the belief that those higher fees ...