if a client terminates you and it takes a month to liquidate (???). is the key date the termination date or the date you give up management? and i realize it relates to the reporting period, but i know that part.
Don’t know about the liquidation thing. Was the answer August?
The key date is the termination date, even if it takes a little while to liquidate the portfolio. So for example, if you terminate a portfolio on September 20, you should report performance in your composite through the last full period (August).
August, need to report using the full reporting cycle.
Hell yeah give one to the good guys
Dwight Wrote: ------------------------------------------------------- > The key date is the termination date, even if it > takes a little while to liquidate the portfolio. > > So for example, if you terminate a portfolio on > September 20, you should report performance in > your composite through the last full period > (August). Wierd how you end up post at 2:03PM . Is that a good sign?
Slash Wrote: ------------------------------------------------------- > Don’t know about the liquidation thing. > > Was the answer August? didn’t it take a month to do something?
tibwa Wrote: ------------------------------------------------------- > Wierd how you end up post at 2:03PM . Is that a > good sign? What??
didn’t it take a month to do something?.. i had basically no idea, anyway.
Used august cause you can argue it’s not discretionary anymore and august is last full month
florinpop Wrote: ------------------------------------------------------- > Used august cause you can argue it’s not > discretionary anymore and august is last full > month let close that thread. GIPS is clear on that.
I think it should be September. Because the question is asking “at the end of”. Since you’re notified on Sep 20th, there’s no way you can go back to Auguest rerport - GIPS is very strict about going back.
it should be August. Since the date client terminates the account, the manager loses discretion over the portfolio results after termination, so the last period of reporting for which the manager had complete discretion should be the last one required to be reported. my 2 cents.
I agree with chaucy. I marked september.
chaucy1999 Wrote: ------------------------------------------------------- > I think it should be September. Because the > question is asking “at the end of”. > > Since you’re notified on Sep 20th, there’s no way > you can go back to Auguest rerport - GIPS is very > strict about going back. Then what about the remaining 10 days in September? Pretty sure it’s August, read it at lunch right before I walked in…
Chauncy, it is not a matter of going back to August to re-report…you have already reported august, now you are waiting for end of september…client notifies you and you remove the account as of the end of August, that is, included in august composite perfromance and no longer included after.
but the question says “takes a month to liquidate” that doesnt mean the portfolio becomes non discretionary. imagine this market volatility we had, in 1 month you could lose half your portfolio value, until the account is actually liquidated you still have to manage it in the best interests of the client until you do not have the funds in your possession anmore. If the question said funds were removed from account on september 20th, then august is correct, but cfai threw in the takes 1 month to liquidate on purpose
IH8FSA, what if you are able to liquidate 99% of the portfolio on the 21st? Or the positions you are able to sell go up 200% in value? To many things going on. You lose discretion on the 20th, so it has to go back to August.
the PM may lose discretion as soon as he has to liquidate
if a client gives you a letter saying they would like to leave you in 6 months are you saying that you no longer have to abide by their IPS and since they will no longer be a client you can write naked puts for a 90 year old pensioner for the next 6 months ? Why did you lose all my money? Oh well sicne you were leaving us, we technically could do what we wanted wth your portfolio…