Ethical Communication in Investment Analysis

Very Hard Cfa Institute Code And Standards Investment Analysis - Communication

As an investment professional, you are tasked with preparing a comprehensive report that analyzes the performance of a specific mutual fund over the past five years. The report is meant to be used by potential investors to gauge the fund's track record and make informed investment decisions.

During your analysis, you come across a change in the fund's investment strategy that was implemented two years ago. This change significantly impacted the fund's performance positively. However, you also find that the fund manager did not adequately disclose this shift in strategy in the fund's public communications.

According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, which of the following actions would be the most ethical approach when communicating the findings of your analysis?

Present the fund's performance in a way that highlights the positive impact of the strategy change without mentioning the lack of disclosure.

Include a detailed explanation of the strategy change and its impact on performance, while also criticizing the fund manager for inadequate disclosure.

Provide a balanced performance report that includes the strategy change and emphasizes the need for transparency in communication.

Hint

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