Actually calculating composite performance is relatively straightforward once all the inputs are compiled. However, the tasks involved before the calculations can be performed can be daunting and time consuming depending on where data is stored and the technology available to construct composites. Some firms utilize spreadsheets for calculating composite results […]
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Performance Disclosures
Firms that claim compliance with the GIPS® standards are also required to comply with all applicable laws and regulations. This can be a somewhat difficult task for SEC-registered investment advisers because (unlike the GIPS standards) the SEC doesn’t provide a specific list of required disclosures when advertising performance. There are, […]
Continue ReadingGIPS® Error Correction Survey Results Released
The United States Investment Performance Committee (USIPC), in conjunction with CFA Institute, recently conducted a survey to seek input on error correction policies and procedures used by firms that comply with the Global Investment Performance Standards (GIPS®). The purpose of the survey was to inform the investment industry on how […]
Continue ReadingGIPS® Compliance Notification Form Released
The GIPS® Executive Committee recently approved the new requirement for firms that claim compliance with the GIPS® standards to notify CFA Institute of such claim. In order to adhere to this requirement, firms that claim compliance with the GIPS® standards will be required to submit certain information to CFA Institute […]
Continue ReadingReporting Firm Assets Under Management
For some firms, the assets under management (AUM) reported for GIPS® compliance purposes is different from the AUM reported in regulatory filings such as Form ADV. This is because the requirements related to the accounts that must be included — and how the value of those accounts are measured — […]
Continue ReadingConsiderations for Ongoing GIPS® Compliance
Compliance with the GIPS® standards is not a one-time exercise that, once completed, can be permanently checked off a firm’s to-do list. Once GIPS® compliance has been achieved, it is essential to maintain compliance on an ongoing basis. There are tasks that must be completed on a monthly and annually […]
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