Global Investment Performance Standards (GIPS) Flashcards
The initial edition of the GIPS standards was designed to create a minimum global
investment performance standard that would: (3)
(1) Permit and facilitate acceptance and adoption in developing markets;
(2) Give the global investment management industry one commonly accepted
approach for calculating and presenting performance; and
(3) Address liquid asset classes (equity, fixed income, and cash)
A firm is required to initially present, at a minimum, ________ of annual investment performance that is compliant with the GIPS standards. If the firm or
the composite has been in existence less than ______, the firm must present
performance since ___________.
five years, the firm’s inception or the composite inception date.
After a firm presents a minimum of _______ of GIPS-compliant performance, the firm
must present an additional year of performance each year, building up to a minimum of ________.
five years, 10 years of GIPS-compliant performance
Firms may link non-GIPS-compliant performance to their GIPS-compliant
performance provided that only GIPS-compliant performance is presented
for periods ________ and the firm _________.
after 1 January 2000, discloses the periods of noncompliance
GIPS Sponsors: (4)
(1) Promote the GIPS standards locally;
(2) Provide local market support and input for the GIPS standards;
(3) Present local market–specific issues to the GIPS Executive Committee; and
(4) Participate in the governance of the GIPS standards via membership in then GIPS Council and Regional Investment Performance Subcommittees/
GIPS - 0 Fundamentals of Compliance: Two important issues that a firm must consider when becoming compliant with
the GIPS standards are the (2)
(1) definition of the firm
(2) firm’s definition of
discretion
GIPS - 0 Fundamentals of Compliance: Discontinued composites must be listed for at least _____ after discontinuation
5 years
GIPS - 2 Calculation Methodology: ________ methodology is required for compliance
Total returns
GIPS - 7 Private Equity: This section applies to all private equity investments other than ________ or ________.
open-end, evergreen funds
GIPS - 8 Wrap Fee/ Separately Managed Account (SMA) Portfolios: A wrap fee is a ________.
comprehensive charge levied by an investment manager or investment advisor on a client for providing a bundle of services, such as investment advice, investment research, and brokerage services.
Valuation: The GIPS standards require firms to apply a _______ methodology following the definition and requirements listed below
fair value.
