Claim Compliance with AIMR Performance Presentation Standards

B

To claim compliance with the AIMR-PPS, the firm must comply with the Standards on a firmwide basis. Additionally, the firm must state exactly how it is defining itself for purposes of compliance.

To claim compliance with the AIMR (Association for Investment Management and Research) Performance Presentation Standards, the correct answer is C: none of these answers. The Standards apply to individual investment manager's performance only.

The AIMR Performance Presentation Standards (previously known as the GIPS, Global Investment Performance Standards) are a set of guidelines and ethical principles that provide investment firms with a framework for calculating and presenting the performance of their investment portfolios. These standards aim to ensure fair and consistent reporting of investment performance to protect the interests of investors.

The AIMR Performance Presentation Standards apply to individual investment managers or firms that manage investment portfolios. The standards provide guidelines on various aspects of performance presentation, including calculation methodology, disclosure requirements, and presentation formats. Compliance with these standards helps investment firms to provide transparent and comparable performance information to their clients and prospective investors.

Answer A states that at least 1/2 of the investment managers in the firm must comply with the Standards. This answer is incorrect because compliance with the AIMR Performance Presentation Standards is not based on a fraction or percentage of investment managers within a firm. Each investment manager is responsible for complying with the standards for their individual performance reporting.

Answer B states that the entire firm must comply with the Standards. This answer is incorrect as well. While it is important for the firm as a whole to promote and support adherence to the standards, compliance is determined at the individual investment manager level. Each investment manager is responsible for complying with the standards for their own performance reporting.

Answer D states that at least 3/4 of the investment managers in the firm must comply with the Standards. This answer is also incorrect because, as mentioned earlier, compliance with the AIMR Performance Presentation Standards is not based on a specific fraction or percentage of investment managers within a firm. Compliance is determined on an individual basis.

In conclusion, to claim compliance with the AIMR Performance Presentation Standards, each investment manager within a firm must individually comply with the standards for their own performance reporting. It is not based on a specific percentage or fraction of investment managers within the firm.