IPS

CFA Level III
#1

What are the five constraints of an appropriate investment policy statement and how do you remember them?

#2

TTLLU I have just done them so many times now I remember them Time Horizon Taxes Liquidity Legal and Reg Unique

#3

Yeah I remember it the objectives and constraints the same way RR TTLU RR - Risk and Return

#4

Aweswome abbrevs. Very helpful…

#5

RR/ TTLLU Somebody from last year said it has to be tatooed on your brain.

#6

RR TURTL Risk Return Time horizon Unique Constraints Regulatory / Legal Taxes Liquidity

#7

What are the 26 required disclosures for GIPS? Anyone have an acronym for that hairy little monkey?

#8

tsx… I have the entire list on my toilet door. No shortcuts there.

#9

My toilet door: 1. Definition of firm 2. Availability of complete list and description of composites 3. Minimum asset level 4. Currency used 5. Presence, use and extent of leverage or derivatives 6. Gross-of-fees or net-of-fees label 7. Relevant treatment of withholding tax on income and gains 8. Known inconsistencies in the exchange rate used 9. Conformation to local laws/regulations that differ from GIPS 10. Period and nature of non-compliance 11. Policy used to allocate cash to the carve-out returns 12. Fee schedule 13. Percentage of composite assets that is bundled fee portfolios 14. Various types of fees included in a bundled fee 15. Other fees in addition to direct trading expenses when reporting gross-of-fees 16. Other fees deducted in addition to management fee and trading expenses when net-of-fees 17. Additional information regarding policies for calculation and reporting upon is available upon request 18. Use of a subadvisors and periods of use of subadvisor 19. All significant events that helps clients interpret the performance record 20. Composite description 21. Date and reason for firm redefinition 22. Date and nate of composite change – never retroactively 23. Changes to the name of a composite 24. Composite creation date 25. Periods in which last business day of month is not used 26. Dispersion of returns and dispersion measure

#10

i have a feeling that gips will be in the AM session this year

#11

Thanks mcpass.

#12

Are we supposed to know that list? Is it part of LOS?

#13

maratikus: yes. More than 50% of the time GIPS question is structured as a performance presentation and you have to pick out the missing disclosures in the performance presentation from the above 26 list. If you didn’t memorize the 26, you won’t know what you are looking for. The 26 list is 4-5% of the exam with 50% probability. Cheers :slight_smile:

#14

Thanks, GetSetGo! I guess I will have to print out the list and put it next to my computer screens.

#15

mcpass Wrote: > 22. Date and nate of composite change – never > retroactively what’s nate? Nature?

#16

GetSetGo Wrote: ------------------------------------------------------- > maratikus: yes. More than 50% of the time GIPS > question is structured as a performance > presentation and you have to pick out the missing > disclosures in the performance presentation from > the above 26 list. If you didn’t memorize the 26, > you won’t know what you are looking for. The CFAI has shied away from that type of GIPS question more recently. They were on the morning session in 2005 and 2006, I think, but not in 2007 or 2008. Of course, they’ve been known to do all kinds of crazy things…