Which of the following is NOT a key characteristic of GIPS?

The key characteristic that is not associated with the Global Investment Performance Standards (GIPS) is the application to individual investors. GIPS primarily focus on the performance reporting and presentation standards applicable to investment firms, particularly in how they report investment performance to prospective clients, which are typically institutional investors or large investors rather than individual investors.

The voluntary nature of GIPS indicates that while adherence to these standards is encouraged, it is not compulsory for all investment firms. This means firms can choose whether or not to comply with GIPS, which is designed to promote ethical practices and enhance transparency in performance reporting.

Additionally, GIPS set forth specific ethical standards that ensure fair representation of performance, fostering trust and interoperability between firms. Lastly, while GIPS provide guidelines on performance calculation methods, they do not enforce mandatory calculations; rather, they recommend standardized methodologies and disclosures that firms may adopt to ensure consistency and clarity in reporting performance.

Thus, the correct answer reflects the fact that GIPS are not predominantly designed for individual investors, establishing that the emphasis is on performance measurement and reporting for institutions.