AuthorTopic: confused about GIPS
WurstFlyer
@2017-11-26 09:58:15
Is it too late at night or am I getting too tired, this sentence just doesn't make sense to me,

"Include all actual fee-paying, discretionary portfolios in composites for a minimum of five years or since firm or composite inception. After presenting five years of compliant data, the firm must add annual performance each year going forward up to a minimum of ten years."

Specifically, "the firm must add annual performance each year going forward up to a minimum of ten years."

do they mean up to a MAXIMUM of 10 years? how can you go up to a minimum? I thought you can only approach a minimum from above, that's why they're minimums......

I recall reading over this the first time when I went over the material too and just gave up on it.....
Another thing, the ethics section on the exam, does it concern the applications of the code and standards to scenarios more or do you still get a lot of definition type questions still? And how big is GIPS in this section? I know all the LOSs on GIPS are fair game, but am I smarter spending my time going through more application type questions on the code and ethics or memorizing the various sections of the GIPS?
foreverlove
@2017-12-01 09:59:15
It should just say "for at least 10 years". Minimum is right, "up to" is the bit that doesn't make sense.

In fact here is the GIPS standard:

"The GIPS standards REQUIRE FIRMS to include all actual fee-paying, discreionary PORTFOLIOS in COMPOSITES defined according to similar strategy
and/or investment objective and REQUIRE FIRMS to initially show GIPS-compliant history for a minimum of five (5) years or since inception of the FIRM or COMPOSITE if in existence less than 5 years. After presenting at least 5 years of compliant history, the FIRM MUST add annual performance each year going forward up to ten (10) years, at a minimum."

Commas make a difference, although it does seem to have been written by someone whose first language is not English.

CFA Discussion Topic: confused about GIPS

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Lina

Lina