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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1 Result
  • Archived

    Effective: 1 May, 2010 - 31 December, 2019
    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. We calculate composite returns daily. May we calculate the three-year annualized ex-post standard deviation using daily returns versus monthly returns?

    No. For the purpose of meeting the requirement to disclose the three-year annualized ex-post standard deviation, monthly returns must be used. Requiring the same periodicity for all firms allows for comparability between firms. In this instance, daily returns can be linked to create monthly returns which can then be used to calculate the required three-year annualized ex-post standard deviation (using monthly returns.)