GIPS Historical performance record

This is the part that confuses me a lot The standard indicates that Firms are required to present at a minimum 5 years of annual investment performance that is complaint with GIPS … Ok , I understand this, but the following… after a firm presents 5 year of compliant history, the firm MUST present additional annual performance up to 10 years… so my question:: How many EXACT compliant year performance should i include in the report? 10 years Or CAN BE 5 years compliant performance + 5 years noncompliant performance AND do I have to present minimum 10 years to clients? OR 5 years are ok?

njblain Wrote: ------------------------------------------------------- > The minimum number of compliant years in the first > year of GIPS compliance is 5. Subsequently, add a > year each year (not difficult, given that you’re > adding at the end of the period) until you have > been GIPS compliant for 5 years, at which point, > and forever after, you must present 10 years. > > In the early years, you may present additional > years (i.e. further back than the initial 5) that > are not compliant. > > If an exam question says “What is min no of > years?” the answer is 5, but it would be a rather > odd question not to qualify with more information. so after 5 year compliant performance, i have to present 10 year COMPLIANT performance?

The goal is to have 10-yr compliant performance records at all the times. The firm can take “compliant” status if it has a min of 5-yr compliant history. (I believe we can interpret this as “until” a firm has 5-yr compliant history, it cannot declare itself GIPS compliant). Now, in addition, it has to undertake an obligation of continuing the compliant performance for a min of 5 years. Now at the future point – at the end of the future 5yrs, I would have had 10 yrs compliant performance. I guess your confusion is whether this means 10-yrs immediate past history or 10-yrs history regardless. I want to say “immediate”. So if a firm is operational (with composites) for 15yrs, the firm could go back and report atleast 10yrs for compliance. It does not have to worry about the earliest 5 years. If a firm is 5yrs operational, then it can be GIPS compliant but will loose its status at a point at which it defaults the compliance. Will let the experts comment

Good explanation here, it really just comes down to this: 2001 - 2005 data: GIPS Compliance +2006 history data +2007 history data +2008 history data +2009 history data +2010 history data … then +2011 history data (2002 - 2011) +2012 history data (2003 - 2012) … and on and on.

yea, yeah…more gips please… thanks!