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GIPS
Also called Global Investment Performance Standards. A CFA term, defined in plain English with the distinction examiners test.
What it means
Voluntary standards for calculating and presenting investment performance, designed so that a prospective client can compare firms on a like-for-like basis.
The exam angle
Compliance is claimed by the firm as a whole — never by a single composite, product or individual.
Where it appears in the syllabus
- Ethical & Professional StandardsCFA Level I · exam weight 10–15% · The Code, the seven Standards, and how examiners phrase violations.
- Performance MeasurementCFA Level III · exam weight 5–10% · Attribution, appraisal, manager selection and the GIPS standards.
Related terms
- CompositeAll portfolios managed to the same strategy or objective, grouped together for GIPS reporting.
- Code of EthicsThe aspirational statement of how members and candidates should conduct themselves.
- Diligence and reasonable basisThe requirement that any recommendation or action rest on adequate research and analysis that could be defended if…
- Fair dealingTreating all clients fairly when disseminating recommendations or taking investment action.
- Fiduciary dutyThe obligation to act in another party’s interest ahead of your own, with the care and loyalty that relationship…
- Front-runningTrading ahead of a client order to benefit from the price move that order will cause.
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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