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Which of the following statements does not form part of the performance presentation guidance provided in the CFA Institute Standards of Professional Conduct?
- Terminated accounts should be included while presenting historical
performance. - All appropriate disclosures to fully explain performance should be made,
including disclosures relating to use of simulation or other models to
calculate results. - Comparable performance numbers for similar funds of competitors should be
provided along with the company’s own fund.
- Terminated accounts should be included while presenting historical
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Correct Answer: C
Standard III (D), Performance Presentation, requires terminated accounts to be included while presenting historical performance. Excluding terminated accounts generally leads to an upward bias in the results presented. All appropriate disclosures to fully explain performance should be made, including disclosures relating to use of simulation or other models to calculate results.
The standard does not require presenting competitor fund performance along with the company’s fund.
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