Requirements for Presenting and Reporting Composites
Firms aiming for GIPS compliance should make a reasonable effort to furnish a GIPS Report to potential clients and investors in limited distribution pooled funds. The report should accurately represent the investment strategy being promoted to these prospective clients. Two…
Requirements for Presenting and Reporting Composites
Firms aiming for GIPS compliance should make a reasonable effort to furnish a GIPS Report to potential clients and investors in limited distribution pooled funds. The report should accurately represent the investment strategy being promoted to these prospective clients. Two…
Composites: Inclusion and Exclusion of Portfolios
The GIPS standards for constructing composites mandate the timely and consistent inclusion of new portfolios once they are managed. Firms must create, document, and consistently follow a policy for adding new portfolios to the relevant composites promptly. In many cases,…
Composites: Identifying Eligible Portfolios and Establishing Investment Strategies
Defining Discretion Let’s delve into the concept of defining discretion in managing portfolios. These restrictions on the investment process can vary widely, and they should be thoroughly outlined in the client’s Investment Policy Statement (IPS). While they serve as crucial…
Composites: Identifying Eligible Portfolios and Establishing Investment Strategies
Defining Discretion Let’s delve into the concept of defining discretion in managing portfolios. These restrictions on the investment process can vary widely, and they should be thoroughly outlined in the client’s Investment Policy Statement (IPS). While they serve as crucial…
Composite Time-Weighted Return Calculations
Composites are collections of different portfolios grouped together for tracking and measurement purposes. When dealing with composites, it’s essential to follow GIPS® standards diligently because they can potentially distort clients’ perceptions of performance and returns. According to the GIPS standards,…
Topics Related to Calculating Miscellaneous Returns
A firm may opt to report Money-Weighted Returns (MWR) instead of Time-Weighted Returns (TWR) if they have control over external cash flows and meet one of the following conditions: The portfolios have a closed-end, fixed life, or fixed commitment structure….
Time Weighted Return
Time weighted return (“TWR”) is a method of calculating portfolio returns via linking sub-period returns and adjusting for the effect of large external cash flows. Portfolios using TWR must be valued monthly. Portfolios must also be valued at the time…
Objective and Scope of the GIPS Standards
The Global Investment Performance Standards (GIPS)® are designed to promote honesty and accuracy in reporting investment performance. GIPS aims to eliminate deceptive practices in investment reporting and presentation, including: Misrepresenting expertise: Presenting returns of top portfolios as if they represent…
Asset Manager Code
Loyalty to Clients Place client interests before their own. Managers must establish firm policies and procedures that ensure client interests are given precedence over their own. This commitment should encompass all aspects of the Manager-client relationship, including investment choices, transactions,…
