Ethical Performance Reporting Standards

Medium Asset Manager Code Performance Reporting

John is a portfolio manager at XYZ Asset Management and is responsible for communicating performance reports to clients. Recently, John completed the quarterly performance report for one of his firm's funds. In compiling the report, he made the decision to adjust the performance figures to exclude the poor performance of a specific asset class that negatively affected the overall fund returns. He believes this adjustment will present a more favorable view of the fund's performance.

According to the CFA Institute's Asset Manager Code, which of the following practices best aligns with ethical performance reporting standards?

Including all performance data, regardless of the impact on the fund's overall figures, to provide a complete and transparent picture.

Adjusting performance figures to exclude poor performing assets to demonstrate superior performance.

Presenting only the best-performing segments of the portfolio to attract new clients, without context on the overall performance.

Hint

Submitted7.9K

Correct6.2K

% Correct78%