Scenario: An investment report highlights favorable results from a single period while omitting underperforming periods, misleading clients. Which CFA Institute Standard is violated?

• A. Standard IV.D Performance Presentation
• B. Standard V.A Diligence and Reasonable Basis
• C. Standard IV.E Preservation of Confidentiality
• D. Standard IV.C Suitability

Answer: (A)

Presenting performance data in a way that is not fair or complete is the issue here. Under the CFA Institute Standard IV.D on Performance Presentation, professionals must report performance in a manner that is not misleading. Highlighting favorable results from a single period while omitting weaker periods creates a distorted view of results and undermines client trust, violating the obligation to present full, transparent performance history. The standard requires accurate representation of returns over appropriate time horizons, disclosure of how returns are calculated, and inclusion of relevant context such as risk and benchmarks. In practice, that means showing longer-term performance or multiple periods and clearly explaining any selective reporting. Confidentiality, diligence and reasonable basis, and suitability address different concerns—protecting client data, ensuring underlying analyses are sound, and matching investments to a client’s objectives—not the misrepresentation of performance history.