Understanding GIPS: Fair Representation in Performance Reporting

Very Easy Global Investment Performance Standards Key Concepts

In the context of the Global Investment Performance Standards (GIPS), one of the key concepts is the notion of fair representation and disclosure. This principle ensures that performance data should be presented in a way that is not misleading to prospective clients and adheres to the standards set forth.

Which of the following statements accurately reflects a fundamental principle of GIPS regarding performance reporting?

All performance reports must be audited annually.

Performance results must be calculated using the same methodology over time.

Every firm must present the performance of all its portfolios.

Hint

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