GIPS - fee schedule

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FrankCFA

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For compliant Presentations, which one is correct way to describe fee schedule?
A. The standard fixed management fee for accounts with assets under management of up to €50 million is 0.35% per annum; 0.25% thereafter.
B. 1.5% annual fee; Quarterly deduction
C. Both are not correct
 
Tiered fee schedules are fine.
The second is odd, if the quarterly fees are accrued for in the monthly performance this should be ok, but by the question i’m guessing they’re not.
Hence, A.
 
I think C
the ‘standard fee schedule’ is making me wonder if there’s a non-standard fee schedule and if so, it needs to be disclosed
 
I am pretty sure its A:

Taken from the CFAI website…
GIPS Standards Mission and Vision: A Road Map

WHAT IS A COMPLIANT PRESENTATION? (CONTINUED)

Valuations are computed and performance is reported in U.S. dollars.
Gross-of-fees returns are presented before management and custodial fees but after all trading expenses. Composite and benchmark returns are presented net of non-reclaimable withholding taxes. Net-of-fees returns are calculated by deducting the highest fee of 0.83% from the monthly gross composite return. The management fee schedule is as follows: 1.00% on the first $25 million; 0.60% thereafter.
This composite was created in February 2000. A complete list of composite descriptions is available upon request.
Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year.
The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The standard deviation is not presented for 2002 through 2010 because monthly composite and benchmark returns were not available, and is not required for periods prior to 2011.
 
A is correct! (I copy from CFA sample). I think arigolden found it as well!
B….I make it up.
*** Reminder: Performance presentation needs to disclose fee schedule!
 
FrankCFA wrote:
B….I make it up.
Click to expand...
GIPS have stolen your soul. Few weeks ago you were kind and pure. You entered into a dark world. Come back to your senses Frank. GIPS are the first of the Biblical end of days.
 
B would be correct also if you specified what quarterly deduction means. the requirement is just that a fee schedule has to be present in presentations and advertisements, and I think there’s an implied assumption that it will be a coherent one.
 
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