Schweser wrong on GIPS?

all, Investment, investment, standards

Which of the following is NOT a key characteristic of the Global Investment Performance Standards (GIPS)? GIPS:
A) do not address every aspect of performance measurement, valuation, attribution, or coverage of all assets.
B) are ethical standards for investment performance presentation to ensure fair representation and full disclosure of an investment firm’s performance history.
C) require managers to include all actual feepaying and nonfeepaying discretionary portfolios in composites defined according to similar strategy and/or investment objective.
D) require firms to use certain calculation and presentation methods and to make certain disclosures along with the performance record.
The correct answer was C) require managers to include all actual feepaying and nonfeepaying discretionary portfolios in composites defined according to similar strategy and/or investment objective.
The GIPS do not require managers to include nonfeepaying accounts in composites.
Schweser says nonfee paying accounts need not be included, but a sample exam I took from CFAI said discretionary, nondiscretionary, feepaying, and nonfee paying must be included. Is Schweser wrong?

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发表于 2013-4-10 04:38 | 只看该作者

I know that. Schweser is saying that nonfee paying do not need to be included. But CFAI says that they do need to be included. Here is an explanation from CFAI:
Total firm assets must be the aggregate of the market value of all discretionary and nondiscretionary assets under management within the defined firm. This includes both feepaying and nonfeepaying assets.
SO the discrepancy is that CFAI seems to say that nonfee paying and nondiscretionary portfolios should be included in composites, but SChweser says that managers need to only include the actual fee paying ones.

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