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I would come down on the side of it being opinion particularly if it were followed by a disclaimer noting that investment performance was not guaranteed. However I’m not sure I’m right.

Скажите по человечески, что вас тревожит. wink

No, not convinced this is right. Still think that your statement does not distinguish fact from opinion.

There is an EOC Q that has nearly this exact quote. It is OK, no violation.

Was there more to the question that had him stating facts or am I getting confused with another question?

Saying, “I am confident” is objectively an opinion, and in no way can that be construed as a guarantee or a matter of fact, so go for it.

However, he promised.

I’m not sure if that phrase violates any kind of rule or CFA ethics guideline. It will, however, make you sound like a douche.

Thanks, friends! Now I am confident that I may use that phrase! nothing unethical at all there :slight_smile:

There was no promise. I’m confident (or I’m sure, I believe etc.) but you should decide yourself.

Your confidence is being translated to clients - i think, this constitutes a promise like.

It’s not any different than CFAI’s absurd statement in their mock 2 years ago where the FA said, “I assure you of great results.” except in this case the guy stated past performance is no guarantee of future success.

It’s not a violation according to CFAI. It’s not a guarantee of success. If he wasn’t confident, do you think he would be doing the fund/strategy that he was doing in the first place? Who runs a fund and says, “Yea i’m not confident in what I’m doing, pls commit capital to my strategy.”

Everyone is confident. It’s boilerplate.

yea but i dont think the issue is stating “i am confident”. i think the issue is stating “will outperform the market” which is not an opinion and can be a guarantee of performance. you can state “may or can outperform the market”, but “will outperform” may be a violation

I believe that any advertisement as well as past performance is subject to misrepresentation issues. If a person advertises her opinion, there must be other words to express it - remember Alan Greenspan? The guy never used such words like “i’m confident, assured, believe, etc” - the vocabulary consisted of may be, not possible but probable, hardly expected, etc. In our case the confidence (at what level of) means “will outperform”.

no offense, but…

  1. it doesn’t matter what you believe. it matters what CFAI believes. there is a question that is almost verbatim the same from the 2010 mock and it wasn’t a violation then and it’s almost guaranteed not to be a violation now.

  2. alan greenspan-speak is maybe the worst example a human being can possibly bring into a discussion of word choice in a CFAI ethics question. it’s not even a legitimate line of discussion.

by saying past performance is no guarantee of future success, he is distinguishing between fact and opinion. it’s his opinion that he is confident in his strategy, but it’s not a guaranteed fact.

+1

“I’m confident XXX will win the Superbowl… but their recent success doesn’t guarantee that they’ll actually win”.

This doesn’t promise anything.

sha la la l al al al ala

I dont know guys, the words “will outperform” is a pretty misinforming statement. I would shudder to use that in my practice.

I can say “I am confident, that this strategy can outperform” or “I am confident that this strategy has a good chance of outperforming the market”.

the words “will outperform” slip into the promise land.

The terms “will outperform” cannot be looked at in isolation.

There is a key difference between:

“Method A will outperform Method B” - bad.

“I am confident Method A will outperform Method B based on my modelling of historical data. However, historical data is not necessarily a true indicator for future performance” - okay.

Just because you are confident of something happening doesn’t imply that it will happen. There’s already a suggestion that it’s no guarantee from the second sentence.