Key Components of Performance Reporting in Asset Management

As a portfolio manager at a mid-sized investment firm, you have been tasked with preparing performance reports for your clients. Your firm follows the CFA Institute's Asset Manager Code, specifically its guidelines on Performance Reporting. One client, concerned about the accuracy of their reported performance, requests detailed information on how performance is calculated, the benchmarks used, and the frequency of reports.

Discuss the key components that should be included in the performance reporting process to ensure compliance with the Asset Manager Code. In your response, address the importance of transparency, proper benchmark selection, and regular updates to clients.