Misleading Performance Presentations

Hard Cfa Institute Code And Standards Duties - Performance Presentation

Ben is an investment manager who has been managing a portfolio for several years. As part of his marketing efforts, he prepares a presentation showcasing the portfolio's performance. He includes a chart depicting the portfolio's performance over time, but he adjusts the starting date to show a more favorable return by selecting a period during which the market experienced a significant downturn. This adjustment was made to enhance his firm's reputation among future clients.

Which of the following actions best describes Ben's violation of the CFA Institute Code of Ethics and Standards of Professional Conduct regarding performance presentations?

Ben is permitted to select the time period for performance reporting if it results in a better representation of his skills.

Ben has violated the CFA Institute standards by presenting misleading performance data based on selective reporting.

Ben can present performance data from a chosen period as long as it is clearly stated in the presentation.

Hint

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