Performance Reporting Ethics in Asset Management

Very Hard Asset Manager Code Performance Reporting

As an asset manager at XYZ Capital, you are responsible for the performance reporting of a newly launched mutual fund. Your team generates a performance report to be distributed to investors, showcasing the fund's returns since inception. You notice that your analysis includes absolute returns without providing a benchmark for comparison, nor does it address the risks associated with those returns. Additionally, the report highlights the fund's best-performing months without clearly disclosing the time period considered.

According to the Asset Manager Code of Conduct regarding performance reporting, which statement best describes an ethical approach to this situation?

Include the fund's performance results alongside a relevant benchmark and acknowledge the risks taken to achieve those results.

Remove the absolute return figures and only present the best-performing months to showcase the fund’s strengths.

Provide only the best-performing months and a disclaimer that there was no benchmark during the analysis period.

Hint

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% Correct94%