Accruing advisory fees: does it make sense?

by | Mar 13, 2018 | accruing advisory fees, advisory fee, GIPS, GIPS 20/20, Global Investment Performance Standards, gross of fees, Investment Performance Guy, net of fees, net-of-fees return

  I recently sent a suggestion into the GIPS(R) (Global Investment Performance Standards) Help Desk, suggesting that they introduce a recommendation, if not an outright ban, on firms deducting the annual fee from the annual gross-of-fee return, to arrive at their...

When gross minus net doesn’t equal the annual advisory fee: still an oldie but a goodie

by | Mar 17, 2017 | advisory fee, GIPS, gross of fees, Investment Performance Guy, net of fees, net-of-fees return, performance measurement

  Perhaps the problem I’ll touch on is such that firms will avoid reporting gross- and net-of-fee returns. Hopefully not. A new GIPS(R) (Global Investment Performance Standards) verification client reached out with a problem. One of their clients subtracted...
Deriving net rates of return

Deriving net rates of return

by | Dec 15, 2011 | gross of fees, net of fees

There has been a bit of a debate on one of the Linkedin groups lately, regarding the proper way to derive net-of-fee returns, when the fees come out of the corpus of the account. I happen to like this topic, and wrote an article on it for the CFA Institute some time...