Forget lengthy disclosures. There’s nothing like punctuation to ward off investors.
According to Bank of Israel research published Tuesday, the simple addition of an exclamation mark to the names of some mutual funds led to significant declines in net flows as retail investors grew warier. The bank calls it the “Exclamation Mark of Cain.”
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Tabitha Edgens is the co-head of regulatory affairs at the Bank Policy Institute.
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Alexander Fulmer is an assistant professor of marketing at the Cornell Peter and Stephanie Nolan School of Hotel Administration within Cornell's SC Johnson College of Business. Fulmer grew up in Manhattan, and graduated Summa Cum Laude from Cornell's Hotel School. He completed a post baccalaureate psychology program at Columbia University and graduated from Yale University with a Ph.D. in marketing.
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While conventional theories on decision-making hold that investment strategies should be made following rational analysis of qualities like risk, return, or fees, the research paper published Tuesday shows presentation can shape investment behavior.

The paper draws on a study of a 2010 Israel Securities Authority reform that required fund managers to add an exclamation mark to the names of mutual funds allowed to hold high-yield corporate bonds beyond their maximum exposure to equity investments. Only the risk salience was affected, not the fundamentals or information available.
However, the name change also created another impact.
Funds that added an exclamation mark boosted junk bond holdings significantly. “We leave
the further investigation of this behavior to future research,” the researchers wrote.