GIPS and reporting requirement

CFA Level III Portfolio Management
#1

I am not sure how to interpret this requirement:

“For each GIPS compliant composite presented, the GIPS standards require that firms show at least 5 years of annual performance (less if the composite has been in existence for a shorter period), and that the GIPS -compliant performance record must then ben extended each year until 10 year’s results have been presented”

So if a composite exist for 7 years, does it meet the requirement is they report only 5 years or not ? (Since one expect that the performance record was extended after 5 years)

#2

You need to report at least 5 most recent years of compliant performance of ALL composites (basically the whole firm), or less if the composite has existed for less than 5 years. You need to keep reporting in compliance for at least 10 years of presentation.

I’m not sure what happens beyond 10 years. GIPS is my weakness.

#3

7 years.

After 10 years you report the previous 10 years.

#4

i thought it was 5 years too? Where did you get from 7 from? Are u sure you’re not confusing the record retention timeframe which is 7 years if not already defined by the firm.

#5

When claiming compliance, if you have been in existence for more than 5 years you need to show at least 5 years of compliant data, then each year passing is added until you reach ten and then you can move on a rolling last ten years data

#6

At least five years of performance (or for the period since the firm’s inception or the composite inception date if the firm or the composite has been in existence less than five years) that meets the requirements of the GIPS standards. After a firm presents a minimum of five years of GIPS-compliant performance (or for the period since the firm’s inception or the composite inception date if the firm or the composite has been in existence less than five years), the firm must present an additional year of performance each year, building up to a minimum of 10 years of GIPS-compliant performance

#7

amen. 5 yrs.

#8

7 was answer to your question if the composite inception was 7 years ago. Guess I was wrong. Can you opt to show only 5 instead?

#9

I think if the firm has been in existence for 7 years when you first start being gips compliant, then you can opt to start with your 5 most recent, then building up onward till 10Y.

So you can start either with 5, 6 or the whole 7Y, but for sure a minimum of 5Y

we ok?