What has changed in GIPS since last year?

CFA Level III
#1

I know there have been a few subtle changes, not sure if anybody has already compiled them? I would prefer to not go hunt for all the minute changes by re-reading everything.

Thanks.

#2

i have just been reading the 2010 GIPS handbook from the website - same as last year

if there are changes i am not aware of any

#3

I think the WRAP material is new. Not sure if it was added this year or the year before.

#4

I don’t know but i would make sure you know how to calculate the real estate total return. eg. the return on capital plus the return on income. and make sure to use capital employed.

three different compliance statements.

the three year ex post standard deviation must be presented.

no carve out allowed anymore

#5

i pray for 3 questions in the gips item set that ask for capital emplyed, cg return, income return

#6

i pray for 0% GIPS

#7

are you sure about the last one? I think that should read as No carveout without its own cash balance allowed anymore.

#8

Carveouts with it’s own Cash Balances only

#9

carveouts must be Separately Managed + own cash balance to be more precise

#10

The number of candidates preparing.

#11
  1. Prior to Jan 2012, external valuation atleast once evry 3 years. Now once in a year or if client stipulate otherwise at least once every 3 years
#12

Who can list the 3 principles underlying Tactical asset allocation?

#13

Alladin…not sure if this is what you were referencing

Tactical Asset Allocation: Temporary deviations from strategic allocation based on short term capital market expectations: mispriced securities or sections, interest rate expecations or currency expectations.

#14

Alladin…tactical allocators believe in reversion to mean and there are returns to be had in the market (inefficiencies)

#15

GIPS question for you all:

GIPS says you have to create 1 firm-wide composite that covers all actual fee paying (and non-fee paying), discretionary portfolios

  1. this is different from the total assets under mgmt calculation correct? that requires all assets even non-discetionary (unless given by client mandate to subadvise)

  2. if you sub-allocate 50% of your client’s capital to another fund/firm (say S&P500 index), you still include this effect in your firm-wide composite, because it’s effectively your decision? what if it’s the client’s decision and they still pay you a fee and say, “I want it in the index.”

#16

I can list 3 principles underlying Tactical asset allocation, but can you explain in plain language? :slight_smile:

1, Market prices tell explicitly what Returns are available. 2, Relative expected Returns reflect relative risk. 3, Market are rational and Mean Reverting.

#17

There is 1 firm wide group, it is not a composite. The portfolios in it do not have to be fee paying discretionary, they just have to be considered “Assets Under Management” for the firm. Composites are shown as a % of this group of total firm AUM on composite disclosures. I am not sure about Q2.

#18

Man, hide & seek question about GIPS is hard.

Missing or mistakens, which are harder to find?