Situation: a portfolio manager who has invested in one style for the last ten years has decided to change style. He intents to inform his clients in three months, when end of the year statement are due. Is this a violation of violation of Communication With Clients and Prospective Clients? On page 84 CFAI text is says … must promptly disclose any material changes … Question: Does three months constitute PROMPT?
No. Prompt is immediately, not in 3 months. Any change in the investment style that could impact the investment in a major way needs to be disclosed promptly. A 3 months window is an eternity.
map1, thank you
And, i suppose that they recomment issuing summaries when full reports are not yet to come so this should apply to substantial changes in investment style like this one…
map1 is on fire. keep it up!