GIPS compliance requires presenting a minimum of how many years of performance data?

• A. Three years
• B. Five years
• C. Ten years
• D. One year

Answer: (B)

Five years of performance data is the minimum required under GIPS. This horizon gives investors a meaningful view of performance and enables fair comparisons across firms, avoiding reliance on short-term results that can be misleading. If a firm has been in operation for less than five years, it should present all available history since inception rather than extending the track record beyond what exists. Presenting only three years or one year would not meet the standard and could mislead by focusing on a too-short period. If longer performance histories exist, they can be shown as appropriate, but the starting point remains five years as the minimum.