“The GIPS standards require firms to show investment performance for a minimum of five years, or since the inception of the firm or composite if either has existed for less than five years. After presenting at least five years of GIPS-compliant history, the firm must add annual performance each subsequent year building to a minimum of 10 years.”
Is this just saying performance must be shown for at least 10 yrs (or since inception)?
OR
Is the wording more subtle than that? Is it saying you can choose to initially provide only 5 years, even if you have more than 5 years of track record?
E.g. suppose a firm that is new to GIPS has a 20 year GIPS-compliant track record. They would rather not report their performance prior to 5 years ago, so they report their 5 year history and then build that to 10 over time. Apart from not being in the spirit of GIPS, is that permissable?
Is this just saying performance must be shown for at least 10 yrs (or since inception)?
OR
Is the wording more subtle than that? Is it saying you can choose to initially provide only 5 years, even if you have more than 5 years of track record?
E.g. suppose a firm that is new to GIPS has a 20 year GIPS-compliant track record. They would rather not report their performance prior to 5 years ago, so they report their 5 year history and then build that to 10 over time. Apart from not being in the spirit of GIPS, is that permissable?