Hi, quick thing: I am an investment mgmt firm. I have 20 years of history. To be compliant I should: - Show last 5 years according to GIPS standards - Also, show previous 5 years to above, regardless of how I did calculations, to “complete” a 10 year track record Is this correct? I mean, I don´t get how the “up to 10 year” works, specially because the cfa text mentions “building to a 10 year COMPLIANT track record”… I think it means that I always have to show 10 year track record and, from those 10 years, it is mandatory that the last 5 years from now must be GIPS compliant. Is this correct or am I missing something? thanks a lot
The way I understand it is: You need to show a minimum of 5 years to be GIPS Compliant. If you have been in existence for 20 years, you have an option to either go back and restate the past 5 years, or start accumulating info for the next 5 years, which is when you can say you are compliant. Then you continue for another 5 years, and then have to report 10 years of compliant info.
ok. but in your first option (“go back and restate the past 5 years”), don´t you have to show 5 more (restated or not) to show 10 years as they require? I mean, I see you can restate past 5 years, or do nothing and comply the next 5 years, but don´t see what happens to the “other 5” you must also include to complete 10 years
I think you show a minimum of 5 to be compliant, increasing to 10.
You must start with a minimum of showing 5 years of performance or Since Inception if less than 5 years. Then every year going forward you add a year till you reach 10 years of performance, then you can either keep showing a rolling 10 years worth of performance or continue adding. If you have more than 5 years worth of data from teh start you can show it if you want its your choice. For instance if I started a fund in 2000, i would have to show at least from 2003-2007 which is 5 years, then in 2008 it would be 2003-2008, then in 2009 it would be 2003-2010 up to say 2003-2012 which is 10 years. In 2013 I can show either 2003-2013 or show 2004-2013…get it…
I got it thanks a lot
Hey Bigwilly, if you started your fund @ 2000, why did you start showing your result from 2003-2007, why not from 2000? I am just asking…
B/c i wasn’t happy with my 2000-2002 performance 
or there weren’t in compliance with GIPS b/c I calculated the returns on Settlement Date basis vs Trade Date…
i think he was just proving the point but to answer WS: I recall that you need to show GIPS complianct info beginning jan 1, 2000 and if you present non compliant info preceding jan 1, 2000 you have to say what is non-compliant and why it’s non compliant
bigwilly Wrote: ------------------------------------------------------- > B/c i wasn’t happy with my 2000-2002 performance > or there weren’t in compliance with GIPS b/c I > calculated the returns on Settlement Date basis vs > Trade Date… So you can “cherry pick”, as long as your provide 5 yrs of GIPS compliant record…am I somewhat correct saying that??
Yes, I believe so, but only at teh start…It has to be 5 yrs minimum from say December 2007… But you might have to disclose why you didnt show the other periods.
yes, just seen it in schweser: “standard 4.a.10: prior periods (…) firms may present performance results that do not comply with the standards as long as they disclose the periods of noncompliance and how the presentation fails to comply”
bigwilly Wrote: ------------------------------------------------------- > Yes, I believe so, but only at teh start…It has > to be 5 yrs minimum from say December 2007… But > you might have to disclose why you didnt show the > other periods. I don’t think you have to disclose why (though your potential client may be asking ) Which part of GIPS says this? - sticky