The investment community's need for a common, accepted set of guidelines to promote fair representation and full disclosure in every firm's presentation performance results to clients and prospective clients has guided the development of the
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A. B. C. D.Explanation
The Performance Presentation are the manifestation of a set of guiding ethical principles and should be interpreted as minimum standards for presenting investment performance.
The correct answer is C. AIMR Performance Presentation Standards.
The investment community recognizes the importance of having consistent and transparent guidelines for presenting performance results to clients and prospective clients. The AIMR (Association for Investment Management and Research), now known as CFA Institute, has played a significant role in developing these guidelines.
The AIMR Performance Presentation Standards provide a common and accepted set of guidelines that promote fair representation and full disclosure of performance results. These standards aim to ensure that investment firms present their performance in a consistent and meaningful manner, allowing clients and prospective clients to make informed investment decisions.
The standards cover various aspects of performance presentation, including calculation methodologies, disclosure requirements, and performance reporting. They provide guidelines on how to calculate and present investment returns, including the inclusion or exclusion of certain items such as fees, expenses, and cash flows.
By following these standards, investment firms can provide accurate and comparable performance information, allowing investors to evaluate and compare investment opportunities effectively. The standards also help in reducing the potential for misleading or deceptive performance presentations, promoting transparency and trust in the investment industry.
It's worth noting that the AIMR (now CFA Institute) has a broader set of standards called the AIMR Standards of Practice, which cover ethical and professional conduct in the investment management profession. While these standards are important, they are not specifically focused on performance presentation. Therefore, option B, AIMR Standards of Practice, is not the correct answer.
Option A, AIMR Standards for Calculation of Returns, is not the correct answer either because it only focuses on the calculation methodologies for returns and does not encompass the broader guidelines for performance presentation.
Option D, AIMR Performance and Calculation Investment Board, is not the correct answer either. There is no such board associated with AIMR or CFA Institute.
In summary, the correct answer is C. AIMR Performance Presentation Standards. These standards provide a common set of guidelines for investment firms to present performance results in a fair and transparent manner, promoting consistency and full disclosure in the investment community.