Which of the following is an important requirement of Global Investment Performance Standards (GIPS)?

A) Benchmarks and composites should be created on an ex post basis.

B) All of these choices are correct.

C) Time-weighted rates of return that adjust for daily-weighted cash flows must be used beginning January 1, 2003.

D) Firms need to comply with the local laws of regulation, which supersede GIPS.

All of the following are requirements of the Global Investment Performance Standards (GIPS) EXCEPT:

A) a firm is required to present, at minimum, ten years of annual investment performance that is compliant with GIPS.

B) portfolios must be valued at least monthly for periods beginning January 1, 2001.

C) total return, including realized and unrealized gains plus income, must be used.

D) returns from cash and cash equivalents held in portfolios must be included in total-return calculations.

Under the Global Investment Performance Standards (GIPS), for periods beginning January 1, 2001, portfolio valuation must be based on:

A) market values and must occur at least monthly.

B) cost basis and they must occur at least monthly.

C) book values and they must occur at least monthly.

D) market values and they must occur at least quarterly.

Which of the following actions are recommended (not required) for claiming compliance with the Global Investment Performance Standards?

A) Accrual accounting should be used for dividends (as of the ex-dividend date).

B) Total return, including realized and unrealized gains plus income must be used.

C) Returns from cash and cash equivalents held in portfolios must be included in total return calculations.

D) If a firm sets a minimum asset level for portfolios to be included in a composite, no portfolios below that level can be included in the composite.

Firm X currently claims compliance with the Global Investment Performance Standards (GIPS) but uses settlement-date accounting. Beginning January 1, 2005, what must Firm X do to remain compliant?

A) Begin using trade-date accounting and recalculate historical performance of its composites.

B) Begin using trade-date accounting.

C) Nothing, there is no change in requirements.

D) Disclose the use of settlement-date accounting.

LNJ Asset Management, Inc., claims compliance with the Global Investment Performance Standards (GIPS). Which of the following statements would render LNJ ineligible for this claim?

A) Valuations are done monthly.

B) Portfolio valuations are on a cost basis.

C) LNJ only has four years of history.

D) Cash and cash equivalent returns are included in calculations.

Since its inception on 1 January, 1994, Alpine Investment Management (AIM) has calculated its investment performance using quarterly valuation. Beginning 1 January, 2004, AIM plans to present its performance history since its inception. What must AIM do with regard to this issue if it intends to claim compliance with the Global Investment Performance Standards (GIPS)? Recalculate its performance for the years:

A) 2000 through 2003 using monthly valuation.

B) 2001 through 2003 using monthly valuation.

C) 1994 through 2003 using monthly valuation.

D) 2001 through 2003 using monthly valuation, and disclose the fact that quarterly valuation was used in the pre-2001 periods.

The Strausburg Investment Management (SIM) manages portfolios that are represented in more than 15 composites. Over the years, the exact number of portfolios under management has fluctuated between 65 and 95 due to terminations and additions. Assume that SIM is notified of the termination of a portfolio on 25 August, 2002. At the end of which of the following dates should the terminated portfolio be removed from its compositin oreder to be compliant with the Global Investment Performance Standards (GIPS)?

A) 30 August, 2002.

B) 31 July, 2002.

C) 30 June, 2002.

D) 31 December, 2001.

Which of the following is a correct representation of requirements needed to meet the Global Investment Performance Standards (GIPS)?

A) Portfolios must be valued at least monthly for periods beginning January 1, 2001.

B) All of these choices are correct.

C) Firms must use trade-date accounting for periods beginning January 1, 2005.

D) Total return, including realized and unrealized gains plus income must be used.

Which of the following is NOT a Global Investment Performance Standards (GIPS) input data requirement?

A) Portfolio valuations must be based on market values (not cost basis or book values).

B) Portfolios must be valued at least quarterly. For periods beginning January 1, 2001, portfolios must be valued at least monthly.

C) All data and information necessary to support a firm's performance presentation and to perform the required calculations must be captured and maintained.

D) For periods beginning January 1, 2005, firms must use settlement date accounting.

接着上一帖的题

After reviewing the presentation, Walsh again meets with Bill Klecko. She identifies several violations of GIPS, including:

• The lack of a notation that composite definitions are available upon request.
• Inclusion in the equity composite of carve-outs that are not managed separately with their own cash balance.
• Failure to list the minimum asset value for portfolio inclusion in the composite.
• The lack of a fee schedule and disclosure of what fees are deducted.
• No disclosure of dispersion of portfolio returns relative to the composite.

Using the modified Dietz method, the portfolio return for the March 2005 quarter is closest to:

A) 27.27%.

B) 28.99%.

C) 28.48%.

D) 33.39%.

A) include the hedge-fund division in the composites.

B) separate the different asset-management styles into company subsidiaries.

C) differentiate the portfolio-management styles of the equity and hedge-fund managers.

D) do nothing. The composite already satisfies the GIPS requirements to be a firm.

A) treatment of dividends and interest.

B) adjustment for daily external cash flows.

C) lack of ability to exactly reflect cash flows.

D) use of two different calculation methods.

A) Failure to list the minimum asset value for portfolio inclusion in the composite.

B) Inclusion in the equity composite of carve-outs that are not managed separately with their own cash balance.

C) The lack of a fee schedule and disclosure of what fees are deducted.

D) The lack of a notation that composite definitions are available upon request.

A) not providing portfolio values on the dates of large cash flows.

B) not recalculating historical performance data based on trade-date accounting.

C) failing to disclose that nonrealized gains are included as part of the total return.

D) failing to provide a risk measure for the composite.

A) frequency of portfolio asset-weighting.

B) exclusion of non-fee-paying portfolios.

C) failure to disclose treatment of withholding tax on capital gains.

D) lack of disclosure about fiscal year end.