Don't underestimate GIPS

CFA Level I
#1

I was surprised to see at least 5-6 questions on GIPS in the December exam. My advice would be to flip through the GIPS notes right before the exam. Goodluck.

#2

Another tip : a lot of people get mixed up between what constitutes a composite and what constitutes total assets Composite : fee paying, discretionary portfolios only Total Assets : fee paying, non fee paying, discretionary & non discretionary portfolios only

#3

Good point, i’ll be using secret sauce and my own notes to brush up on ethics and GIPS a couple hours before the exam.

#4

Wait, so non-fee-paying discretionary portfolios can’t be in the composite?

#5

I believe they may be, yes

#6

Yes composite can include non fee paying portfolios only if the firm has discretion over it. I believe the non-fee paying discretionary portfolios must be disclosed.

#7

need some advice on GIPS…on Schweser GIPS section is quite small…but on the CFAI books it is pretty huge…so what to do??

#8

it will literally take you less than an hour to read the entire GIPS section in the CFAI books. Most of it is supplmental, which you should skim over. The part about non-feepaying accounts I remember was included in the additional readings.

#9

esco Wrote: ------------------------------------------------------- > I was surprised to see at least 5-6 questions on > GIPS in the December exam. My advice would be to > flip through the GIPS notes right before the > exam. > > Goodluck. 5-6 out of 36 (AM and PM combined)? Or 5-6 out of the 18 per half of the exam (AM or PM).

#10

Thanks for sharing

#11

firm wide basis applicaiton total firm assets = mv of all accounts firms are to use broadest definition “Jason Value Inc has prepared and presented this report in compliance with GIPS” the only permitted compliant statement 3rd party indy verification is recommended GIPS Standards: F.lawed I.nputs C.an C.ause D.oomed P.erformance Fundamentals of Compliance Input Data Calculation Composites Disclosure Performance (… and then Real Estate and Private Equity) remember what types of accounts need GIPS

#12

QuantJock, that is a pretty solid summary…I just printed it off. Thanks!!!

#13

++ on QuantJock’s summary.