GIPS - No of years

ok, don’t shoot me for asking this. ''If a firm is in existance for say last 15 years and wants to present its GIPS compliant results. How many years it has to start with ? 1) Previous 5 years and then add 1 year each for next 5 years or 2) Previous 10 years ? ‘’ I am bit confused with the wordings of this standard.

10 years of performance if it has it, lets say 1998 to 2008 calendar year performance. 1990 to 2000 stuff does not have to be GIPS compliant but have to footnote why its not.

thanks BiPolarBoyBoston. That pretty much clears my doubt.

what if it only has 4 years of data and cant get anymore. Can it be GIPS compliant? Would it disclose its 2003 data is non-compliant? Or can it not use that?

^Since the firm exists for 15 years, It can’t get away by just showing 4 years of data.

CFAdreams Wrote: ------------------------------------------------------- > what if it only has 4 years of data and cant get > anymore. Can it be GIPS compliant? > > Would it disclose its 2003 data is non-compliant? > Or can it not use that? thats fine if it only has 4 years worth of data, have to show since inception returns and still be GIPS compliant 2003 data has to be GIPS compliant if u want to use it. only data before Jan 1st 2000 can be non-gips compliant and linked to post Jan 1st 2000 data only if its disclosed how its not compliant

sorry conflicting results… i need a tie-breaker

if the composite only has 4 years worth of data (compliant and non-compliant data) while the firm has been around for 15 years you can still show 4 years worth of data for the composite and be GIPS compliant.

Standard 5.A.1a says that the firm must present AT LEAST 5 years of compliant history and every year going forward so that the firm eventually has at least 10 years of compliant history. The firm in this case would not need to present GIPS compliant history for the past 15 years in order to be compliant. It would only need to present 5 years of compliant history. A firm that has less than 5 years of existence would be allowed to present less than 5 years of compliant history and would beed to add additional years up to 10yrs.

It is true that if your company has been in existence for, say, 15 years, and you want to claim compliance to GIPS, you are required to initially show 5 years of historical performance (No cherry picking! if you can show more, then great! but you don’t have to) … and then keep linking each new year’s performance to add to a total of 10 years… after that, you can show more than 10 years of performance, but you are only required to show the latest 10 years…