easy one: Which of the following investment vehicles would be subject to GIPS performance measurement standards for private equity? (a) fund of funds (b) evergreen funds © unleveraged real estate investment trust (d) open end funds
B - Evergreen Funds.
Well if the P/E fund had a Private Equity Fund of Funds which is can, then it could be subject to GIPS.
What’s the answer?
I actually pulled this question from the L1 forum (shock and awe)… and the consensus was (A)
Woohoo I’m with the Majority of L1ers who probably reviewed GIPS and I havent.
A??? What was the explanation?
my logic is that evergreen, open end, and REITs are all included in the general provisions of GIPS (not specific PE GIPS provisions) so by default it must be fund of funds…
WS see my explanation It could be a PE Fund of Funds, so instead of Hedge Funds it could be PEs’
^got it! Thx
I think it’s (A) though am not sure. The first paragraph under “7. Private Equity” says that open-end and evergreen funds are to follow the main GIPS provision, so (b) and (d) are out. © is real estate so is out. The reason why I am not sure is that evergreen funds is mentioned in 7.A.7: 7.A.7 — Partnership/fund investments, direct investment, and open-end private equity investments (eg. evergreen funds) must be in separate composites. Any idea? - sticky