Page 24 - FINAL CFA SLIDES JUNE 2019 DAY 1
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5. The GIPS Standards
LOS 5.a: Describe the key features of the GIPS
standards and the fundamentals of compliance.
Key Characteristics of GIPS:
To claim compliance, an investment management firm must define its “firm.” This definition should reflect
the “distinct business entity” ..
GIPS are ethical standards for performance presentation which ensure fair representation of results and
full disclosure.
Include all actual fee-paying, discretionary portfolios in composites for a minimum of five years or since
firm or composite inception. After presenting five years of compliant data, the firm must add annual
performance each year going forward up to a minimum of ten years.
Firms are required to use certain calculation and presentation standards and make specific disclosures.
Input data must be accurate.
