GIPS_Pratice Problem_Q36

CFA Level III Portfolio Management
#1

Why option A is incorrect?

"Advertisements that state a claim of compliance and present performance must also present one of the following sets of total returns:

  1. one-, three-, and five-year annualized composite returns through the most recent period;
  2. period-to-date composite returns in addition to one-, three-, and five-year annualized composite returns through the same period of time as presented in the corresponding compliant presentation; or
  3. period-to-date composite returns in addition to five years of annual composite returns calculated through the same period of time as presented in the corresponding compliant presentation."

Shouldn’t set a of total return presentation applies?

#2

anybody?

#3

I’m not sure what the confusion is. It’s in the text. Ads have to show either:

  • period to date + 1/3/5 year annualized

or

  • period to date + 5 years annual
#4

The option A misses the period to date…

#5

It doesn’t need period to date returns though, the OP has posted the requirements and the advert satisfies a)

hence, there’s nothing wrong with the advert, it meets the guidelines.