Importance of Performance Reporting in Asset Management

As an asset manager, it is crucial to adhere to high ethical standards, especially in performance reporting. The CFA Institute's Asset Manager Code stipulates best practices regarding the accurate and transparent reporting of investment performance to clients.

In your response, discuss the importance of performance reporting in building client trust and confidence. You should include specific aspects outlined in the Asset Manager Code that relate to performance reporting and how they protect the interests of clients. Additionally, mention the consequences of misrepresenting performance data in an investment firm's reporting practices.