Effective Dates in GIPS important, effective, standards, management, 2010

pawn

The Dates in GIPS are probably more important than we thought...GIPS is an "actively managed" standards...Let's start.

2011/1/1: (fair value and standard deviation)

- The effective date for the 2010 edition of the GIPS standards
- Total firm assets must be aggregate FAIR VALUE of all assets under management.
- All portfolios must be valued in FAIR VALUE and the GIPS Valuation Principles.

- Disclose if the composite's VALUATION HIERARCHY materially diff from recommendation.
- Disclose and describe any known material diff in EXCHANGE RATES or valuation sources
- Disclose the use of Subjective Unobservable Inputs
- Disclose 3-year annualized STANDARD DEVIATION (monthly) of composite/benchmark;
- Or, an appropriate 3-year risk measure for composite/benchmark. Same periodicity.

- RE: Separate income returns and capital returns (geometrically linked).
- RE: Disclose material diff between external valuation and valuation in reporting.
- RE(closed-end funds): when initial period < 1-year, present the non-annualized NET-OF-FEES SI-IRR through the initial annual period end.

- PE: Calculate SI-IRR by using daily cash flows.
- PE: when the initial period < 1-year, present the non-annualized NET-OF-FEES and
GROSS-OF-FEES SI-IRR through the initial annual period end.
- PE: For FUND OF FUNDS: % in DIRECT INVESTMENTS(NOT in fund investment vehicles).


Please add more.



Edited 1 time(s). Last edit at Thursday, April 28, 2011 at 10:08AM by deriv108.

lcw77

2010: (Cash flow, Composite and Carve-out)

- value portfolios on the date of large cash flows.
- value portfolio at Month end or last business-day of the month.
- calculate composite returns at least Monthly.
- carve-out not included unless it is Managed separately with its own cash balance.


- prior to 2010, disclose if any portfolios not valued at Month-end/last b-day of month.
- prior to 2010, disclose the policy used to allocate cash to carve-outs.

- RE: value portfolios as of each Quarter end or last business day of each quarter.

Windjam

When I look at this, I realize the trade off of memorizing all of this for a few points on an item set is not worth it.

Needless to say, I just go with - if it mentions current standards or 2011, go with what's FAIR and in the interest of full disclosure. How many questions can they ask on anything outdated? That's where I stand on GIPS.



Edited 1 time(s). Last edit at Thursday, April 28, 2011 at 01:33PM by mp2438.

aidebaobao

i concur - i might 'punt' GIPS and concentrate on other topics

canadiananalyst

Agreed. I have not seen a question testing a specific date...It's just diff way to study it.

For example, the following requirements are related.

- value portfolio at Month end or last business-day of the month.
- calculate composite returns at least Monthly.
- Disclose 3-year annualized STANDARD DEVIATION (monthly) of composite/benchmark;



Edited 1 time(s). Last edit at Thursday, April 28, 2011 at 01:58PM by deriv108.

Windjammer

Just curious, GIPS has never asked the firms to retroactively apply these new requirements to restate the performance, right?