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6 Cards in this Set

  • Front
  • Back
GIPS Objectives
1.To obtain acceptance and presentation standards in a fair, comparable format with full disclosure.
2.To ensure consistent, accurate investment performance data in areas of reporting, records, marketing, and presentation.
3.To promote fair competition among investment management firms in all markets without unnecessary entry barriers for new firms.
4.To promote global "self regulation"
Why Global standard needed? industry becomes global in nature.
2.prospective clients and investment management firms will benefit from an established measurement standard.
3.requiring performance presentation standards will help assure investors that the performance information is both complete and fairly presented.
4.clients and managers will benefit form a global investment performance standard by having a greater degree of confidence in the performance numbers.
a group of individual discretionary portfolios representing a similar investment strategy, objective, or mandate.
key features of GIPS
a. a firm must define its "firm". This definition should reflect the "distinct business entity".
b.GIPS ensure fair presentation and full disclosre.
c.include actual fee paying, discretionary portfolios in composites for at least 5 years, and add annual performance each year going forward up to 10 years, at a minimum.
d.requiring firms to use certain calculation and presentation methods to make certain disclosures along with the performance record. must be accurate
f.contains required and recommanded provision, firms are encouraged to recommanded one.
g.firms are encouraged to disclose more information than the minimum requirement.
h.only full compliance can be claimed
i.follows the law when law and GIPS have conflicts, but must disclose such conflict
j.some "recommendation" may become "require" in the future
name 8 sections of GIPS standard
1.fundamental of compliance
2.input data
3.calculation methodology
4.composite construction
6.presentation and reporting
7.real estate
8.private equity
is verification process required in GIPS
no, only recommended.