I had actually signed off this forum, but while doing this sample from CFAI website (free at http://www.cfainstitute.org/mycfa/candidate/aboutexams/Pages/cfa_exam_sample_questions.aspx ) I came across this error in GIPS. Question 15. The portfolio is valued “Monthly” and the answer is “GIPS recommends performance presentations include returns for quarterly and/or shorter time periods (Provisions II.1.A.3-4).” From what i understand for portfolio valuations after 1/1/05 portfolio should be valued daily wtng of cash flows and post 1/1/10 it is large cashflows. For composite it is monthly. Any thoughts?
Well anyone?
This pertains to the calculation methodology standard 2.A.7 states that for composite returns after Jan. 2006 are to be calculated at least quarterly and after Jan. 2010 they are to be calculated at least monthly. Is this the answer?
In the vignette, the disclosure states that “Portfolio valuations are computed monthly and are denominated in US dollars.” I am not sure if it meant composite or actual portfolio valuations. CFAI response is clearly wrong if it refers to portfolio valuations.
This is confusing. Portfolio valuations must be for any large cash flows or on the last business day of the month. Composites should be valued when? Daily?
Composites is monthly as of now
JP_RL_CFA Wrote: ------------------------------------------------------- > This is confusing. Portfolio valuations must be > for any large cash flows or on the last business > day of the month. > > Composites should be valued when? Daily? Composites is monthly.
Gotcha. Gotta read over Gips again and corp governance. Kinda odd that they haven’t tested Corp governance once in any of the AM sections. Did they test in PM in last year?
Corp governance is fairly easy fortunately. Having said all that, going through The Sauce today, this whole curriculum is fairly easy. There is nothing that stands out as this is the worst thing in the world ala some of the Level II accounting stuff.
Accounting was my strong suit lol. However, I do agree. I have read every single page of the level 3 cfai material., multiple times Gonna come down to execution and the ability to recognize and avoid CFAI traps on exam day
JP_RL_CFA Wrote: ------------------------------------------------------- > Accounting was my strong suit lol. > > However, I do agree. I have read every single > page of the level 3 cfai material., multiple times > Gonna come down to execution and the ability to > recognize and avoid CFAI traps on exam day I had two accounting classes in college. Accounting 101 and Corporate Finance 400. Economics on the other hand I can do OK at :).
FYI I think the mini sample is a bit dated if you look at the references. So ya composites are required monthly.