CFA INSTITUTE. MINUTES OF THE INVESTMENT PERFORMANCE COUNCIL Conference Call Meeting Tuesday, 7 December :30 9:00am EST

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1 CFA INSTITUTE MINUTES OF THE Conference Call Meeting Tuesday, 7 December :30 9:00am EST Primary Members Present: James Hollis, Chair Yoshiaki Akeda Carl Bacon Louis Boulanger Lynn Clark Alain Ernewein David Gamble Brian Henderson Affiliate Members Present: Bruce Feibel Lesley Harvey Todd Jankowski Yoh Kuwabara Iain McAra CFA Institute Staff Present: Rob Bergstrom Cindy Kent Alecia Licata Stefan Illmer Shinichi Kawano Carol A. Kennedy Terence Pavlic Glenn Solomon Karyn Vincent Hans-Jörg von Euw Ehsan Rahman Paul Saint-Pierre David Spaulding Louise Spencer Carol Lindsey Yolanda Rush Observers Present: Materials Distributed Prior to Meeting: See Appendix A See Appendix B 1. Approval of the Minutes of the 23 September 2004 Washington, DC, In-person meeting Mr. Kawano highlighted two items for correction for the attendance listed in the minutes. After these were noted, Mr. von Euw motioned for approval of the minutes and Mr. Bacon seconded. The minutes were approved. 2. Country Standards Subcommittee Update Overview of the GIPS Evolution Process - 1 -

2 Mr. Solomon presented. The GIPS Evolution Process formulated by the CSSC set out to incorporate the work of the various IPC technical subcommittees in the main GIPS document. The existing recommendations in GIPS were reviewed with regard to possibly becoming requirements. The existing requirements in GIPS were also reviewed for continuing practicability. A Fundamental Concepts section was introduced, as well as new provisions based on local best practices. The various points of the document were reordered into a logical order and the disclosures were streamlined in order to reduce their amount. The IPC then approved the document for public comment. All comments received by the IPC were thoroughly reviewed by the CSSC and appropriate changes were made. Mr. Solomon noted that the public comment period was very beneficial as it actually highlighted some items that the CSSC and IPC missed with regard to specific situations. Effectively, the document as it stands has been thoroughly edited and is now scheduled to be discussed in executive session during this call. Memo to Country Sponsors on GIPS Convergence Mr. Hollis stated that the opportunity to converge to one standard was realized at the most recent in-person meeting of the IPC in Washington, DC. Mr. Hollis noted that it is the mission of the IPC to promote the adoption and implementation of a single investment performance standard. One single standard is more efficient, less costly, more universally recognized and less confusing to the industry. Recognizing issues with various country versions of GIPS and branding, the memo on GIPS Convergence was initiated to begin a dialogue with all of the Country Sponsors. The memo addresses proposed IPC restructuring revolving around creating two more regional investment performance subcommittees in light of the success of the EIPC. The memo also addresses ownership considerations. The IPC now looks forward to working with the Country Sponsors to elicit their opinions and talk through the ramifications of trying to get to one single standard. Ms. Licata encouraged those associated with Country Sponsors to respond to the memo as soon as possible. 3. Future Meetings 3 March 2005, Hong Kong (TBD) 28 June 2005, Conference Call Meeting, 7:30-9:00am (ET) 22 September 2005, Europe (TBD) Ms. Licata highlighted that the location of the 3 March 2005 In-person meeting of the IPC has been moved from Bangkok to Hong Kong. Additional details will be distributed soon. The regular June conference call will take place on 28 June And the September 2005 In-person meeting will take place at an as yet to be determined location in Europe. 4. Any Other Business Ms. Clark asked for an update on the IPC nominations process. Ms. Licata stated that the Interpretations and Verification Subcommittees had completed their rotations as of their November meetings. The IPC delegation membership rotations have not taken place as of yet - 2 -

3 and there are some members who are currently serving past their term at this point. The nominations process is anticipated to continue this month and new membership is anticipated by the March IPC In-person meeting. 5. Questions from Observers Observer Kazumichi Karita expressed his appreciation for the efforts of the IPC and CFA Institute with regards to GIPS and commented on the issue of convergence. Mr. Karita commented that most market participants do not know about the potential dissolution of CVGs and he believed a desirable procedure should be discussed and incorporated into GIPS and disclosed to the public. He also noted that there will be significant issue with the translating of the revised GIPS in Japan and suggested postponing the Standard s implementation. Mr. Karita also suggested that the GIPS name and trademark belong to the IPC, as opposed to CFA Institute. Mr. Karita supported the establishment of an Asia-Pacific regional committee, but noted there may be significant logistical difficulties in implementing it. Observer Angela Keane asked by what date Country Sponsors should respond to the Convergence Memo. Mr. Hollis hoped Country Sponsors could respond by mid-january. Ms. Licata and Mr. Hollis will create a follow-up communication to Country Sponsors on this issue. IPC Executive Session 6. Review and Approve GIPS Standards Revisions This portion of the call was closed to observers

4 APPENDIX A OBSERVERS PRESENT 7 December 2004 CONFERENCE CALL MEETING Name Country 1. Brian Chapman UK 2. Anthony Howard UK 3. Alecia Hyde USA 4. Todd Juillerat USA 5. Kazumichi Karita Japan 6. Angela Keane Australia 7. Susanne Klemm Switzerland 8. Jane Marriott UK 9. Bill McCoy USA 10. Corne Reniers Netherlands 11. Kenneth Robinson USA - 4 -

5 APPENDIX B IPC MEETING MATERIALS 7 December 2004 CONFERENCE CALL MEETING 1. Minutes of the 23 September In-person IPC meeting, Washington, DC 2. Q&As for GIPS release v.2 3. Gold GIPS draft v.7 4. Current GIPS versus gold GIPS comparison matrix - 5 -