1.Which of the following was NOT a motivation for creating the Global Investment Performance Standards (GIPS)?

A)   Increase the role of government agencies in the investment industry.

B)   Achieve greater uniformity and comparability among presentations of performance.

C)   Improve the service offered to investment management clients.

D)   Enhance the professionalism of the investment industry.

2.Assume that on January 1, 2005, a firm with no Global Investment Performance Standards (GIPS) compliant history since its inception four years ago wishes to claim compliance with GIPS. Which of the following accurately reflects the appropriate action for the firm to take?

A)   Comply with GIPS for the year beginning January 1, 2002, and report its performance prior to this date with a disclosure of why the earlier years are not GIPS compliant.

B)   Comply with GIPS for the year beginning January 1, 2002, and report only performance results since this date.

C)   Nothing, a firm must have five years of compliant performance history to claim compliance with GIPS.

D)   Comply with GIPS for all four periods since the firm's inception.

3.Which of the following is NOT an important characteristic of how a firm defines itself? The firm definition establishes the:

A)   boundaries for what is included when measuring the total firm's assets.

B)   set of portfolios that must be included in at least one of a firm's composites.

C)   entity to which local securities laws apply when they exceed the GIPS requirements.

D)   entity to which the GIPS standards apply when a claim of compliance is made.

4.Whenever an investment management firm presents its investment performance as being in compliance with the Global Investment Performance Standards (GIPS), it must state how it defines itself as a firm. Under GIPS, a firm may define itself for the purpose of claiming GIPS compliance using any of the following options EXCEPT when:

A)   all assets are managed to one or more base currencies.

B)   an investment firm, subsidiary, or division is held out to clients or potential clients as a distinct business unit.

C)   the subsidiary or division of a company claims GIPS compliance when the parent company is GIPS compliant.

D)   an entity is registered with the appropriate national regulatory authority overseeing the entity's investment management activities.

5.In January 2003, the Medusco Investment firm has decided to present its performance history in compliance with the Global Investment Performance Standards (GIPS). Medusco was formed on January 1, 1992, and has never before presented its performance results in compliance with the GIPS standards. Which of the following actions must Medusco take in order to claim GIPS compliance?

A)   Present GIPS-compliant performance results for the 5-year period from January 1, 1998, through December 31, 2002, and report five additional years of non-GIPS-compliant performance with a disclosure explaining why the performance in the earlier years is not GIPS-compliant.

B)   Retroactively comply with GIPS for periods after January 1, 2000, and report non-GIPS-compliant performance results for the periods January 1, 1993, through December 31, 1999, with a disclosure explaining why these earlier years are not GIPS-compliant.

C)   Present GIPS-compliant performance results for the 5-year period from January 1, 1998, through December 31, 2002.

D)   Present GIPS-compliant performance results for the 10-year period January 1, 1993, through December 31, 2002.

6.With respect to reporting investment results, Global Investment Performance Standards (GIPS) require a minimum of:

A)   three years of historical performance.

B)   ten years of historical performance.

C)   five years of historical performance.

D)   twelve years of historical performance.

答案和详解如下：

1.Which of the following was NOT a motivation for creating the Global Investment Performance Standards (GIPS)?

A)   Increase the role of government agencies in the investment industry.

B)   Achieve greater uniformity and comparability among presentations of performance.

C)   Improve the service offered to investment management clients.

D)   Enhance the professionalism of the investment industry.

The correct answer was A)

All of these were motivations for creating GIPS except to increase the role of government. In fact, these standards have been created to bolster the notion of self-regulation and reduce the encroachment of government into the investment industry.

2.Assume that on January 1, 2005, a firm with no Global Investment Performance Standards (GIPS) compliant history since its inception four years ago wishes to claim compliance with GIPS. Which of the following accurately reflects the appropriate action for the firm to take?

A)   Comply with GIPS for the year beginning January 1, 2002, and report its performance prior to this date with a disclosure of why the earlier years are not GIPS compliant.

B)   Comply with GIPS for the year beginning January 1, 2002, and report only performance results since this date.

C)   Nothing, a firm must have five years of compliant performance history to claim compliance with GIPS.

D)   Comply with GIPS for all four periods since the firm's inception.

The correct answer was D)

In order to claim GIPS compliance, a firm must present at least five years of annual investment performance that is compliant with GIPS. If a firm or composite is less than five years old, the performance since the inception of the firm or composite must be presented.

3.Which of the following is NOT an important characteristic of how a firm defines itself? The firm definition establishes the:

A)   boundaries for what is included when measuring the total firm's assets.

B)   set of portfolios that must be included in at least one of a firm's composites.

C)   entity to which local securities laws apply when they exceed the GIPS requirements.

D)   entity to which the GIPS standards apply when a claim of compliance is made.

The correct answer was C)

When a firm claims compliance with GIPS, it must be compliant on a firm-wide basis. The definition of the “firm” under the GIPS standards establishes the boundaries for what constitutes firm assets, and the set of portfolios that must be included in at least one composite.

4.Whenever an investment management firm presents its investment performance as being in compliance with the Global Investment Performance Standards (GIPS), it must state how it defines itself as a firm. Under GIPS, a firm may define itself for the purpose of claiming GIPS compliance using any of the following options EXCEPT when:

A)   all assets are managed to one or more base currencies.

B)   an investment firm, subsidiary, or division is held out to clients or potential clients as a distinct business unit.

C)   the subsidiary or division of a company claims GIPS compliance when the parent company is GIPS compliant.

D)   an entity is registered with the appropriate national regulatory authority overseeing the entity's investment management activities.

The correct answer was C)

In order for an investment firm to claim GIPS compliance, GIPS must be applied on a firmwide basis. If the parent company is GIPS compliant, this does not automatically mean the divisions or subsidiaries are compliant. A division or subsidiary of a company would also have to comply with GIPS to be able to claim compliance. If an investment firm, subsidiary, or division is held out to clients or potential clients as a distinct business unit it can claim GIPS compliance even if the parent company is not compliant.

5.In January 2003, the Medusco Investment firm has decided to present its performance history in compliance with the Global Investment Performance Standards (GIPS). Medusco was formed on January 1, 1992, and has never before presented its performance results in compliance with the GIPS standards. Which of the following actions must Medusco take in order to claim GIPS compliance?

A)   Present GIPS-compliant performance results for the 5-year period from January 1, 1998, through December 31, 2002, and report five additional years of non-GIPS-compliant performance with a disclosure explaining why the performance in the earlier years is not GIPS-compliant.

B)   Retroactively comply with GIPS for periods after January 1, 2000, and report non-GIPS-compliant performance results for the periods January 1, 1993, through December 31, 1999, with a disclosure explaining why these earlier years are not GIPS-compliant.

C)   Present GIPS-compliant performance results for the 5-year period from January 1, 1998, through December 31, 2002.

D)   Present GIPS-compliant performance results for the 10-year period January 1, 1993, through December 31, 2002.

The correct answer was C)

In order to claim GIPS compliance, Medusco must present at least five years of annual investment performance results that are compliant with GIPS. Medusco may, at its discretion, add an additional five years of results that are not GIPS-compliant to their five-year compliant history with a disclosure of the period of noncompliance and an explanation of why the presentation for these periods is not GIPS compliant.

6.With respect to reporting investment results, Global Investment Performance Standards (GIPS) require a minimum of:

A)   three years of historical performance.

B)   ten years of historical performance.

C)   five years of historical performance.

D)   twelve years of historical performance.

The correct answer was C)

GIPS require a minimum of five years of conforming historical performance results.