GIPS

Well, now something about the GIPS which is the ethical view of AIMR to present reports.

They are voluntary ethical rules and seek avoid misrepresentations of performance.

Characteristics of the GIPS standards

1. To claim compliance, an investment management firm must define its “firm,”
2. GIPS are ethical standards for performance presentation
3. Include all actual fee-paying, discretionary portfolios in composites for a minimum of five years or since firm or composite inception.
4. Use certain calculation and presentation standards and make specific disclosures.
5. Input data accurate.
6. Encouraged to adopt the recommended provisions.
7. Present all pertinent additional and supplemental information.
8. Only full compliance can be claimed.
9. Law or regulation conflicts with GIPS, follow the local law
10. Certain “recommendations” may become “requirements” in the future.
11. Supplemental “private equity” and “real estate” provisions are to be applied to those asset classes.

~ by bghaendler on May 7, 2008.