Understanding Key Concepts of GIPS

Easy Global Investment Performance Standards Key Concepts

When it comes to the Global Investment Performance Standards (GIPS), understanding the key concepts is crucial for investment professionals. GIPS is a set of ethical principles that provide guidance on the calculation and presentation of investment performance. These standards are designed to ensure fair representation and full disclosure of an investment firm's performance history.

Which of the following statements best describes a foundational concept of the GIPS?

GIPS requires compliance with performance reporting standards only if the firm has discretionary assets.

GIPS emphasizes the importance of fair representation and full disclosure of an investment firm's performance.

GIPS allows for the selective inclusion of historical performance records to enhance marketing.

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