I’m having a hard time grasping something about GIPS, hoping someone can clarify. In order to be compliant with GIPS, a firm must have a minimum of 5 years compliant performance, or since inception if less than 5 years. Fine. Got that. A firm must add a year for each additional year until a minimum of 10 years is reached. That’s where they lose me. How is that any different from saying that a firm must have a minimum of 10 years compliant data, or since inception? Why is the 5 year peice in there at all?
There was another thread from hiredguns1 earlier about this same question. Not sure of the exact post, which detailed this out. Actually the wordings of this section in our “smaller” abridged copy seems to be slightly off, because of missing commas/punctuation. CP
at least 5 years when you claim compliance or from inception if shorter. once the composites are up and running, you need to continue with them for a minimum of 5 years (so you can’t drop badly perfoming composites, and introduce survivorship bias) I think!
Does it mean that after the 10 year period, I can stop showing the perfomance on those composites and still claim compliance with GIPS.