GIPS Compliance and Performance Presentation

Medium Global Investment Performance Standards Compliance

As part of your compliance with the Global Investment Performance Standards (GIPS), you are tasked with ensuring that your investment firm accurately presents all performance figures to stakeholders. Your firm has recently experienced a significant increase in client accounts due to a marketing campaign. In preparation for the year-end reporting, your supervisor emphasizes the importance of not only presenting true performance figures but also ensuring that these figures comply with GIPS.

Which of the following actions would best comply with GIPS standards regarding performance presentation?

Present the performance results net of fees, as this provides a clearer picture for the investors.

Include any prior performance generated from accounts that have since closed, to showcase the firm’s historical performance.

Use hypothetical or back-tested performance to illustrate the firm’s capabilities, especially since client interest has surged.

Hint

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Correct10.7K

% Correct70%