Get Ready for 2010!
Remember the following GIPS provisions are effective 1 January 2010:
1.A.3 For periods beginning 1 January 2010, FIRMS MUST value PORTFOLIOS on the date of all LARGE EXTERNAL CASH FLOWS.
1.A.4 For periods beginning 1 January 2010, FIRMS MUST value PORTFOLIOS as of the calendar month-end or the last business day of the month.
2.A.6 For periods beginning 1 January 2010, COMPOSITE returns MUST be calculated by asset weighting the individual PORTFOLIO returns at least monthly.
3.A.7 For periods beginning 1 January 2010, CARVE-OUT returns are not permitted to be included in single asset class COMPOSITE returns unless the CARVE-OUTS are actually managed separately with their own cash balances.
In addition, the Error Correction Guidance Statement (PDF) is effective 1 January 2010. Firms should also review the recently released error correction Q&A (PDF).
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