Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

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Archived

Effective: 1 May, 2012 - 31 October, 2012

Categories: Risk

Source: GIPS Executive Committee

For periods ending on or after 1 January 2011, firms must present, as of each annual period end, the three-year annualized ex-post standard deviation (using monthly returns) of both the composite and the benchmark. There are a number of variations in the way in which standard deviation can be calculated. Is there a preferred methodology?

No. Standard deviation is a universally recognized measure and while there are different variations, the GIPS standards do not require one particular calculation methodology. A firm must determine which calculation methodology (or methodologies) will be used and must use the selected methodology (or methodologies.)

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