GIPS - Real Estate

CFA Level III
#1

For periods beginning on or after 1 January 2008, real estate investments must be valued at least quarterly. For periods beginning on or after 1 January 2011, real estate investments must be valued in accordance with the definition of fair value and the GIPS Valuation Principles. Real estate investments must be valued by an external professionally designated, certified or licensed commercial property valuer or appraiser at least once every 36 months for periods prior to 1 January 2012 and, unless client agreements stipulate otherwise, at least once every 12 months thereafter.

Does it mean if client agrees to waive the valuation then investment firm can do nothing for real estate valuation? Thanks.

#2

No it means that in the most recent GIPS real estate must be valued once every 12 months. EXCEPT if agreed to upon that this is too short a time period, in this case the maximum would still be 36 months.

#3

Can I confirm if client agreed to do 5 years valuation (to save the valuation cost), the investment management still can’t aceept it given max is 3 years (36months)?