GIPS - Large Cash Flows and Mod Dietz.

CFA Level III
#1

For periods prior to Jan 2010, if a firm is using Modified Ditez to calculate returns, what is the need to define and document what “Large cash flow” means to the firm? How does that matter as the Mod. Dietz doesn’t require valuations on cash flow dates ? Thoughts ?

#2

I think in general, CFA readings quote 10% as somewhat of a large movement. Iwould go with that figure if I am forced to choose. But I think it will be explicitly mentioned.

#3

10% is the General Rule of Thumb… You can Quote me on that!!

#4

We will not need to calculate Modified Dietz on the exam. You have my word.

#5

Thanks folks!