On September 19th, the SEC announced that researchers from its
Office of the Investor Advocate (OIAD) published an independent
research study that explores the effects of mutual fund performance benchmarks. This OIAD study analyzed market data and the findings of a large behavioral experiment to better understand how investors respond to benchmark presentation during the decision-making process and how funds use and display benchmark information.
In 2014, Congress established the OIAD as a self-governing office within the SEC that would provide a voice for investors as decisions are made at the SEC. The OIAD’s analysis has been placed in the comment file (No. S7-09-20) for rules proposed in 2020 that would revise open-end fund shareholder reports. The proposal’s shareholder reports include information that is especially important for retail investors to assess and monitor their fund investments. The researchers have made this research study available on the OIAD webpage to allow the public to review this additional information. Interested parties may submit feedback via the proposal’s comment file (File No. S7-09-20).
Source:
Office of the Investor Advocate Releases Research Study on Fund Performance Benchmarks (sec.gov)
