Question

A money manager, who is a member of CFA Institute, states that, "Our aggressive growth fund produced a 12% annualized return last quarter. This illustrates the superior results our firm produces." The fund return stated by the manager is accurate. Is this a violation of Standard III(D) Performance Presentation?
A) Yes.
B) No, because a brief summary of results is acceptable as long as more complete information is made available.
C) No, because the manager has stated a fact.

Answer 1

Answer:

A) Yes.

Explanation:

The Standard III(D) Performance Presentation enforces that all CFA members must make sure that the information given to the clients about their investment performance is fair, accurate, and complete. Therefore in this scenario the statement would be a violation of this act, because even though the statement is accurate, it is not complete and is missing too much information about the investment and all of it's details.