Key Concepts of GIPS Compliance

Very Hard Global Investment Performance Standards Key Concepts

As a portfolio manager working in a firm that adheres to the Global Investment Performance Standards (GIPS), you are preparing a performance report for a new multi-asset investment strategy your firm launched last year.

GIPS emphasizes the importance of accurate and fair representation of performance information. Which of the following best reflects a key concept of GIPS in terms of ensuring that your performance report is compliant with GIPS?

The report must include a computation error disclaimer in all instances to protect against potential miscalculations.

The performance figures presented should reflect the actual performance of the strategy, including both realized gains and estimated future returns.

The report can selectively show periods of outperformance to highlight management skill, even if it means omitting periods of underperformance.

Hint

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