) BASED ON EXHIBIT 1 AND THE NOTES FOLLOWING THE EXHIBIT, ARCADIA IS LEAST LIKELY IN COMPLIANCE WITH THE GIPS STANDARDS WITH REGARD TO THE
5.) Based on Exhibit 1 and the notes following the exhibit, Arcadia is least likely in
compliance with the GIPS standards with regard to the:
A.
performance presentation.
B.
measure of internal dispersion.
C.
performance record.
Answer = C
Arcadia is required by the GIPS standards to present five years of performance because
the composite has been in existence for that period. The small-cap composite was
started on 31 December 2007. For each composite presented to be GIPS compliant, the
Standards require that firms show at least 5 years of annual performance (less if the
firm or composite has been in existence for a shorter period) and then the performance
record must be extended each year until 10 years of results have been presented.
“Overview of the Global Investment Performance Standards,” Phillip Lawton
Sections 3.11, 3.12