Introduction to the Global Investment Performance Standards (GIPS)

Question 1

The ______ are a practitioner-driven set of ethical principles that establish
a standardized, industry-wide approach for investment firms to follow in calculating
and presenting their historical investment results to prospective clients

Answer 1

GIPS standards

Question 2

Complying with the GIPS standards is ________

Answer 2

voluntary

Question 3

Second, only _________ can claim compliance with the Standards

Answer 3

investment management firms that actually manage assets

Question 4

A firm has only two options with regard to compliance with the GIPS standards: (2)

Answer 4

(1) fully comply with all requirements of the GIPS standards and
claim compliance through the use of the GIPS Compliance Statement
(2) not comply
with all requirements of the GIPS standards and not claim compliance with, or make
any reference to, the GIPS standards

Question 5

A ______ is an aggregation of one or more portfolios managed according to a similar investment mandate, objective, or strategy

Answer 5

composite

Question 6

GIPS verification tests: (2)

Answer 6

(1) whether the investment firm has complied with all the composite construction
requirements of the GIPS standards on a firm-wide basis, and
(2) whether the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.

Question 7

The provisions within the 2010 edition of the GIPS standards are divided into nine sections: _______.

Answer 7

Fundamentals of Compliance, Input Data, Calculation Methodology, Composite
Construction, Disclosure, Presentation and Reporting, Real Estate, Private Equity, and Wrap Fee/Separately Managed Account (SMA) Portfolios

Question 8

The GIPS provisions are further categorized into ______ and ______.

Answer 8

requirements, recommendations.