GIPS Verification

Which of the actions taken by Albana when creating the external advertisement _least likely_ complies with GIPS advertising guidelines?

Incorrect. Presentation of performance isn't required by GIPS advertising guidelines.

Incorrect. GIPS allow for firms to make the determination that no appropriate benchmark for the composite exists.

Indeed. The composite description is insufficient. GIPS mandate that the composite description must include all key features of the composite and must include enough information to allow a prospective client to understand the key characteristics of the composite’s investment mandate, objective, or strategy.

She does not present portfolio performance within the advertisement due to advertising cost and size limitations

She includes a description of the small-cap global equities composite that states that all discretionary portfolios are invested in accordance with global macroeconomic trends

She does not include a benchmark within the advertisement but includes the statement clarifying that no appropriate benchmark exists for this portfolio and discloses her rationale