Ethics-simulated performance


I have a question with regards to simulated performance. Is it possible to present simulated results as long as a proper disclosure is in place? GIPS prohibits such practice, but what about Code of ethics.


GIPS does allow simulated results as supplement information as long as it is disclosed properly, right?

You are allowed to show simulated results but it would be supplemental information. Meaning that it cant be shown stand alone. It would have shown in addition to the composite returns.

As long as proper disclosure is there, you can present simulated results but you can’t post results and promise a return based simulation < - that’s what GIPS prohibits.

And you may not include simulated results in a composite.

Ok, its clear now. Thanks!