Significance of Transparency in GIPS

Very Easy Global Investment Performance Standards Key Concepts

The Global Investment Performance Standards (GIPS) are a set of voluntary guidelines that aim to provide a standardized approach to calculating and presenting investment performance. One of the key concepts within GIPS is the importance of transparency in performance reporting. Transparency allows investors and other stakeholders to make informed decisions based on the reported performance of investment managers.

Which of the following statements best describes the significance of transparency in the context of GIPS?

Transparency ensures the accuracy of performance measurements.

Transparency allows clients to better assess the risk-adjusted return of their investments.

Transparency eliminates the potential for conflicts of interest.

Hint

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