CFA INSTITUTE ETHICS IN PRACTICE: Performance Reporting - Case 1 CASE STUDY Young is CEO, portfolio manager, and sole owner of Stewardship Investment Advisers (SIA), a registered investment adviser with more than $154 million assets under management and over 250 discretionary accounts. For several years. Young has distributed marketing materials to Clients and potential Clients that contain gross-offee performance for returns on SIA's managed portfolios. Young believes that grossoffees calculations are the most relevant because management fees are negotiable and can vary by client. Young includes a footnote at the end of the brochure disclosing that advisory fees would have to be netted out to show actual performance. The marketing material also includes a table that compares percentage increases in the 88P 500 Index with percentage increases in SIA's performance. SIA's performance includes the reinvestment of dividends. Young believes that the SEEP 500 is the most appropriate and understandable benchmark because it is commonly reported in the financial press and recognizable by his Clients. Has Young engaged in misconduct by using grossoffee returns or showing the SEEP 500 performance? Decide what you believe is the correct answer and use the Ethical Decision-Making Framework to help explain your choice. A. Young is guilty of misconduct in showing grossoffee performance. B. Young is NOT guilty of misconduct in showing grossoffee performance. C. Young is guilty of misconduct in providing the S&P 500 as a benchmark. D. Young is NOT guilty of misconduct in providing the S&P 500 as a benchmark