Performance Reporting Under AMC Guidelines

Hard Asset Manager Code Performance Reporting

John is a portfolio manager at XYZ Asset Management, which claims to adhere to the CFA Institute's Asset Manager Code (AMC) of Professional Conduct. Recently, John was reviewing the performance reports for several of his funds. He noticed that one fund's performance report compared the fund's returns solely against a broad market index without considering its specific investment style or strategy. He is questioning whether this approach aligns with the AMC's guidelines on performance reporting.

As John prepares to present this report to his clients, he must ensure that the performance comparison reflects a fair and accurate depiction of the fund's performance relative to its peers. What is the most appropriate action John should take to comply with the AMC regarding performance reporting?

Include a comparison of the fund's performance against a peer group of similar funds in addition to the market index.

Continue to present the report as it is since the broad market index provides sufficient context.

Only use the fund's absolute return without comparison to any benchmarks.

Hint

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