Laranson Asset Management has been managing money since 1982. The Firm became GIPS compliant on Jan 1 2002 and prepared composite presentations for the 1997-2001 period. Equity performance was poor prior to 2002 when a new management team was brought in to replace the existing team. A new director, Tom Jones, is brought in to improve operations, and he would like to show performance starting with 2002, the first year that performance started to improve. He proposes to show composites for the five calendar years 2002 through 2006. Question: Does this course of action comply with GIPS standards?
It does not comply, it adopted over to GIPs in 2002 with 5 years of history and it has to build up to 10 years after having 5 years.
No, once you start reporting data, you add data up to 10 years without dropping old compliant data and then report rolling 10 years (and drop old compliant data).
Does not comply. Have to show the 10 years and disclose the significant change in management team. Upto prospective clients to decide if pre-2002 performance is relevant or not.
No need for me to show answer…you guys got it…good job
need to show 10 yrs, but need to disclose change of management