# kaal:claim:2811729-031

**Claim.** The broad investment authority of unconstrained mutual fund managers exposes retail investors to fluid trading and investing patterns that the average retail investor is unlikely to sufficiently appreciate, regardless of the nature and quantum of disclosure, so additional disclosure cannot close the gap.

**Type.** failure  **Support.** argued

**Holds when.**

- retail investors in funds whose managers hold broad go anywhere authority

**Source quote.**

> This broad investment authority exposes retail UMF investors to fluid trading and investing patterns and behaviors that the "average" retail investor is unlikely to sufficiently appreciate, regardless of the nature and quantum of disclosure to the investor regarding the fund's trading and holdings.

**From.** Wulf A. Kaal, *Unconstrained Mutual Funds and Retail Investor Protection* (2016), V. Policy Implications, page 50

**Cite as.** Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729

**Verify.** sha256 of source PDF `0877b0a076f2614559cb0b1a736f73401cecbee7cfe014da6e36709208e92a74` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Anderson%20-%202016%20-%20Unconstrained%20Mutual%20Funds%20and%20Retail%20Investor%20Protection.pdf

**Failure mode.** Disclosure saturation does not produce understanding  (family: disclosure-ineffectiveness)

**Topics.** disclosure

**Keywords.** disclosure-limits, investor-comprehension, manager-discretion, investor-protection

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