by admin | Jan 28, 2010 | examinations, GIPS, Global Investment Performance Standards, verification
No doubt you recall a time when we wouldn’t tear off those tags on our mattresses, because to do so would violate the law! We were convinced that there was a special agency (the Mattress Police) who, unannounced, would appear at your bedroom door to inspect your...
by admin | Jan 27, 2010 | GIPS, Global Investment Performance Standards
One of the most difficult and confusing aspects of the Global Investment Performance Standards (GIPS(R)) is “discretion.” As we know, “discretion” has multiple meanings. First, we have “legal” discretion and then “GIPS”...
by admin | Jan 27, 2010 | GIPS, Global Investment Performance Standards
The subject of net-of-fee returns, as they pertain to the Global Investment Performance Standards (GIPS(R)) came up twice this week already, so I’ll share with you the questions and my responses. First, I was asked about firms using “model fees” to derive their...
by admin | Jan 20, 2010 | GIPS, Global Investment Performance Standards
Firms that claim compliance with the Global Investment Performance Standards (GIPS(R))are now required to revalue their portfolios whenever large cash flows occur. A few points to make: What if you calculate composite returns and use the aggregate method (i.e., where...
by admin | Jan 14, 2010 | GIPS, Global Investment Performance Standards
I got a call this week from a firm that is trying to deal with the recent changes to the Global Investment Performance Standards (GIPS(R)) rules regarding carve-outs. As of January 1, firms that wish to use carve-outs must manage their cash separately. While this may...
by admin | Jan 13, 2010 | GIPS, Global Investment Performance Standards, hedge funds
The Global Investment Performance Standards (GIPS(R)) don’t currently have any rules or guidance specifically geared to the world of hedge funds, which seems a pity. Some think that “everything you need to know is already there,” but I don’t....
