GIPS clarification records, minimum, history, presented, additional

wildrose

With respect to historical performance records: I know you have to present 5 years back at min, and then 5 additional years to a minimum of 10 years total. Or if your firm was in existence for less than 5 years you can show GIPS compliant performance presentation since inception and your fine... BUT

theres a note that says you may link non-GIPS compliant performance to your compliant history (5 years min) so long as no non-compliance performance is presented after 2001. You must also disclose the periods of non-compliance and explain how the presentation is not in compliance with the GIPS standards.

To get this straight, its January 2011 now. If I show GIPS compliant info back to 2006, then non-GIPS from 2006-2001 and disclose everything fully I can claim GIPS compliance?

Can somebody verify this thought or comment?

leadcfa

mbolzicco Wrote:
-------------------------------------------------------
> With respect to historical performance records:
> I know you have to present 5 years back at min,
> and then 5 additional years to a minimum of 10
> years total. Or if your firm was in existence for
> less than 5 years you can show GIPS compliant
> performance presentation since inception and your
> fine... BUT
>


Not to thread hijack, but this questions is very similar. I don't get the 5 years back at min, and then additional 5 years to a minimum of 10 years.

Is that a contradiction? You present 5 years minimum, but wait, you must add annual performance each year for 10 year minimum. Sike out!

JGovender

Its because different firms will be in different positions based on how long theve been arround..

Consider this: Firm that started in 2007 wants to be GIPS compliant. Because they have been arround for <5 years, they disclose GIPS compliant @#$%& since INCEPTION. Then they can claim compliance.

If a firm has been around since 2001, they have options on how they can claim compliance. First, they can go back 5 years minimum, then add 5 and claim gips compliance in 2015. OR they can go back 6 then forward 4, back 7 forward 3, back 8 forward 2, but they MUST go back at least 5 years. They cannot go back 3 then forward 7.

This is to prevent cherry picking results.

draz

you can't present non-GIPS compliant data after Jan 2000. period. If you present data thats non-compliant before that, that is fine, but you have to disclose and explain why it is not.

The questions on level 1 should be pretty straight-forward (probably only a couple total on GIPS). The fun will come at level 3. Get ready.

Good luck on saturday.



Edited 1 time(s). Last edit at Thursday, June 3, 2010 at 11:06PM by willispierre.

JoeyDVivre

Thanks willi, great point there.