Performance Reporting Compliance

As part of the ongoing effort to enhance transparency and trust in the investment management industry, an asset management firm is reviewing its performance reporting practices. The firm has implemented changes aimed at aligning with the CFA Institute's Asset Manager Code, specifically focusing on ensuring that performance results are accurately reported to existing and potential clients. A compliance officer is tasked with verifying that the firm’s performance reporting includes all relevant information, adhering to the guidance on fair representation and disclosure.

During a recent meeting, the compliance officer raised a question regarding how performance returns should be presented in the firm’s quarterly reports. The officer noted that the firm had previously reported performance both before and after fees but was unclear whether both types of performance returns should be included in the current report to comply with the Asset Manager Code.