When advertising performance results, which of the following are permitted: a) Disclosing that only accounts above $1 Million were included in the composite b) Terminated accounts were excluded c) Simulated results were disclosed and included in the performance numbers Are there any other factors that should or shouldn’t be included in performance results? Which of the above is permitted? Thought I’d throw this out to you guys as a refresher.
not sure…what does everyone else think??
It was a trick question… both A & C are permiited as long as they are both disclosed.
i call BS on answer C… I didn’t think you could evver include simulated, even if they’re disclosed…
a C is wrong, stimulated results can’t be included in calculating actual performance numbers, they could be included in suplemental materials and be clearly labeled that they are simulated
Simulated results are accepted is disclosed, as par free CFAI practice exam. Ponpon
If you call B.S on answer C, then you call B.S on CFAI lol hehe…
Volkovv is correct… you cannot combine model with actual. You can include tehm seperately and disclose but you cannot combine. The CFAI test must have stated it differently PJ.
ponponpq Wrote: ------------------------------------------------------- > Simulated results are accepted is disclosed, as > par free CFAI practice exam. > > Ponpon if not under GIPS then sure…
My mistake… I should have been more clear in my original post… The original post relates to the construction of a composites. In the construction of a composite they can include the results of simulated model portfolios with similar strategies. P. 119 of Schweser Q#12
> In the construction of a composite they can include the results of simulated model portfolios with similar strategies. Yes, as long as they don’t claim compliance with GIPS.