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Reading 4: Global Investment Performance Standards (GIPS?)-L

Session 1: Ethical and Professional Standards
Reading 4: Global Investment Performance Standards (GIPS?)

LOS d: Characterize the eight major sections of the GIPS standards.

 

 

 

The provisions for each section of the Global Investment Performance Standards (GIPS) are divided between:

A)
minimum standards and recommendations.
B)
fee-paying and non fee-paying portfolios.
C)
requirements and recommendations.



 

Firms must meet all requirements in order to claim compliance with the GIPS standards, and are encouraged to adopt and implement the recommendations.

Within the Global Investment Performance Standards (GIPS) are supplemental provisions which must be applied to which of the following asset classes?

A)
Emerging markets and private equity.
B)
Alternative investments and derivatives.
C)
Private equity and real estate.



The GIPS standards do not address performance measurement or coverage of all asset classes, but sections 6 and 7 are supplemental provisions which must be specifically applied private equity and real estate.

TOP

The section of the Global Investment Performance Standards (GIPS) that outlines defining the firm and documenting firm policies and procedures is:

A)
Presentation and Reporting.
B)
Disclosures.
C)
Fundamentals of Compliance.



According to Section 0, Fundamentals of Compliance, the definition of the firm is the foundation for firm-wide compliance and creates boundaries in order to determine total firm assets.

TOP

All of the following are titles of one of the eight sections of the Global Investment Performance Standards (GIPS) EXCEPT:

A)
Implementation.
B)
Real Estate.
C)
Input Data.



“Implementation” is not a name of one of the eight major sections of the GIPS standards.

TOP

The eight major sections of the Global Investment Performance Standards (GIPS) least likely include:

A)
required disclosures.
B)
verification procedures.
C)
input data requirements.


The eight major sections of GIPS are: 0) Fundamentals of compliance; 1) Input data; 2) Calculation methodology; 3) Composite construction; 4) Disclosures; 5) Presentation and reporting; 6) Real estate; and 7) Private equity.

TOP

 顶

TOP

 c

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Thanks.

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