Baillie Gifford, in its response, added that it was in favour of past performance being included in the Kid documents as a way for investors to understand what they might expect from a fund, but said this should not include future projections.
On the issue of transaction costs, Judith MacKenzie, a fund manager at Downing, said the Kid rules methodology caused her to lose 10 per cent of the assets under management of one of her funds, as a result of the way the rules required her to calculate transaction costs.
In its consultation, Esma raised the possibility of using technology to make the information in the Kid easier to access.
However, the Association of Investment Companies, said a digital solution would not address the problems. According to the AIC, making misleading information easier to find would potentially make the problem worse.
In its response, the trade body added: “The AIC does not consider that the amendments proposed in the consultation will address the fundamental issues with the Kid.”
The proposals made by Esma are currently being tested by consumers, and those test results, together with the responses from the consultation, will be used to shape policy in future.
david.thorpe@ft.com
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