- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 4. Introduction to the Global Investment Performance Standards (GIPS)
- Subject 2. The Key Concepts of the GIPS Standards
CFA Practice Question
The Private Equity provisions apply to all of the following except for ______.
II. evergreen funds
III. fund-of-funds investing
IV. secondary investing
I. buy-out investing
II. evergreen funds
III. fund-of-funds investing
IV. secondary investing
Correct Answer: II
User Contributed Comments 6
| User | Comment |
|---|---|
| wuyi | Secondary investing: the purchase of pre-existing limited partnership interests and direct private equity investments. The market develops as a result of investors, who for external reasons, were forced to seek an early exit for their private equity holdings at a discount to fair market value. |
| viannie | Private Equity provisions do not apply for open-end funds and Evergreen funds. For these two types of funds, general GIPS standards applies. |
| ChrisHam | NOT APPLICABLE FOR 1.OPEN END 2.EVERGREEN. |
| shiva5555 | What is an evergreen fund? |
| geofin | (Evergreen fund) A fund in which returns generated on investments are automatically returned to the general pool, with the aim of keeping a continuous supply of capital on hand for investments. www.austinfund.com/faqs.glossary.html |
| johntan1979 | Evergreen = always green = always have greenbacks at hand for investment |