Supplemental information
Under GIPS, material presented alongside a compliant report that adds to or clarifies it but is not required. It must be clearly labelled and must not contradict the required information.
Where you will meet it
Supplemental information appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Explain the GIPS rules for calculating composite returns, including the permitted ways of asset-weighting the returns of member portfolios
“Equal-weighted results may appear only as supplemental information.”
- Explain when a new or acquiring firm may link to, or show as its own history, the performance record of a prior firm or affiliation
“If a condition fails, for example a key portfolio manager stays behind or the process is absorbed into the acquirer's, the old record cannot be presented as the new firm's own, though it may appear as supplemental information.”
Practise it
Practise supplemental information until it is automatic: questions that explain every wrong option.
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