Page 20 - FINAL CFA SLIDES JUNE 2019 DAY 1

LOS 4.a: Explain why the GIPS 4. Introduction to the Global InPerformance Standards (GIPS®)
standards were created, what parties the

GIPS standards apply to, and who is
served by the standards.

Representative accounts —

showing a top-performing portfolio as representative of a firm’s results.

Survivorship bias —
excluding “weak performance” accounts that have been terminated.

Varying time periods—
showing performance for selected time periods with outstanding returns.

GIPS are voluntary apply to investment management firms and are

intended to serve prospective and existing clients of investment

firms..