Few questions:
1a.) True/False: as of 1/1/2010, Daily Valuation is the REQUIRED method for return calculations
1b.) Per a topic test question, can Modified Dietz also be used? Or only until 1/1/2010
2.) What are the rules on performance linkage of different methods?
Thanks!
per other thread:
"Hang on a sec, after 1/1/2010, for “portfolio valuation” you can still use modified Dietz if cashflows are NOT LARGE (CFAI text page 284-285) and firms must value portfolios monthly.
For Large CF (no quantitative guideline given), porfolios must be valued as of the date of the CF (so no modified dietz for LARGE cashflows).
Post 1/1/2010, there is RECOMMENDATION and not a REQUIREMENT that porfolios must be valued as of the date of all external CF.
For Composite calculation, there are two methods (same as before) beg of period and beg of period + CF."
Per Schweser: " It is important to note that beginning January 1, 2010, firms that use approximation methods, such as modified Dietz method and modified IRR method, will not b ein compliance with GIPS…"