GIPS basics

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Question

In a Large-Cap Value composite, why must a terminated fee-paying account remain included for its managed period?

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Answer

Removing poor performers would distort reported performance.

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Question

Why was GIPS created for the investment management industry?

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Answer

To make performance reporting fair, complete, and comparable.

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Question

What does fair representation mean under GIPS?

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Answer

Performance presented must not be misleading.

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Question

Can a GIPS-compliant firm exclude a composite just because it has been closed for several years?

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Answer

No. Closed composites stay in historical records.

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