GIPS-man Quiz 9

CFA Level III
#1

Which of the following is TRUE? A) private equity valuation review procedures must be documented B) firms should prepare private equity valuations at least every 24 months C) closed-end private equity investments must be incuded in composites defined by strategy or vintage year

#2

A

#3

Gut is telling me A, but I’m not really sure why C is wrong

#4

sorry abt the typo, the L on my laptop is broken…

#5

abushey31 Wrote: ------------------------------------------------------- > Gut is telling me A, but I’m not really sure why C > is wrong PE funds have to be included in composites defined by strategy AND vintage year. Answer is A.

#6

A

#7

C

#8

C may be right. Not sure what the “closed-end private equity” is. Is it fund of fund?

#9

C

#10

A

#11

C

#12

answer?

#13

correct answer is A as darkstar pointed out, PE funds have to be included in composites defined by strategy AND vintage year.

#14

mcap11 Wrote: ------------------------------------------------------- > correct answer is A > > > as darkstar pointed out, PE funds have to be > included in composites defined by strategy AND > vintage year. Thanks. C) is incorrect even though “strategy AND vintage year” only applies to Primary Fund(PE).

#15

deriv108 Wrote: ------------------------------------------------------- > C may be right. > > Not sure what the “closed-end private equity” is. > Is it fund of fund? A closed-end private equity fund just means that you can’t redeem your investment any time you want. Open-ended private equity funds are subject to the standard GIPS provisions, not the private equity provisions. On a related note, is anyone AWARE of any open-ended private equity funds? It doesn’t seem that there would be sufficient liquidity in the PE market to deal with redemptions on a regular basis…