Under GIPS, Section 0.B.4 recommends what regarding compliant presentations to existing clients?

Under GIPS, Section 0.B.4 recommends what regarding compliant presentations to existing clients?

• A. Provide to existing clients a compliant presentation for the composite in which the client's portfolio is included.
• B. Provide compliant presentations for every composite to all clients.
• C. Provide only to new clients.
• D. Provide annual summaries to no clients.

Answer: (A)

When communicating with clients who already have an account, the presentation of performance must be tailored to what the client actually holds. Under GIPS, you should provide a compliant presentation for the composite that includes the client’s portfolio. This ensures the client sees the performance in a consistent, transparent format with the standard disclosures and methodology relevant to their investment, making it easy to compare and understand. This approach keeps reporting focused and avoids confusion that would come from showing results for every possible composite to every client. It also aligns with ongoing communication expectations for existing clients, rather than limiting such reporting to new clients or omitting periodic updates.

When communicating with clients who already have an account, the presentation of performance must be tailored to what the client actually holds. Under GIPS, you should provide a compliant presentation for the composite that includes the client’s portfolio. This ensures the client sees the performance in a consistent, transparent format with the standard disclosures and methodology relevant to their investment, making it easy to compare and understand.

This approach keeps reporting focused and avoids confusion that would come from showing results for every possible composite to every client. It also aligns with ongoing communication expectations for existing clients, rather than limiting such reporting to new clients or omitting periodic updates.