A 2020 GIPS Standards Game-Plan

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First-Steps for Segregated Account Managers

Firms managing segregated accounts who claim compliance with the GIPS standards – and firms who currently include pooled funds in composites, present TWRs, and expect to continue doing that: this article is for you. 

Since the major rewrite of the GIPS standards was first announced, the focus has been on updates to make the GIPS standards more relevant to different types of discretionary asset managers.  For firms already claiming compliance, especially managers of segregated accounts, changes were expected to be minor… and they are.

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GIPS® Standards Do’s & Don’ts

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GIPS® Standards Do’s and Don’ts

First Quarter 2019 is almost half over.  Now is a great time for an in-depth review and refresh of firm-wide GIPS standards policies and procedures, especially for firms on an annual verification cycle.

Here’s a list of Do’s and Don’ts to help with those P&P reviews and final polishing of GIPS Composite Reports.

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Money-Weighted Returns in Excel

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Beyond “Don’t Use” – How (Not) to Calculate Money-Weighted Returns in Excel

If cost was of no matter, then asset managers would all own (fill in the blank with your favorite accounting system). Read more

Multi-Asset Composite Membership Changes – GIPS® 2020

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In the 2020 GIPS Exposure Draft, provision 3.A.10 is a revision of 3.A.7 that incorporates the term “client-directed” from the GIPS handbook. It prohibits composite membership changes unless there is a composite redefinition or a documented “client-directed” change to a portfolio’s investment mandate, objective, or strategy.

This provision ensures an asset manager’s decisions are reflected in the composite’s performance, providing accountability for tactical decisions or style drift over time.

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Advisory Only Assets – Understanding New GIPS® Terminology

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The roll-out of 2020 GIPS® is underway and currently open for comment.  One of the more confusing provisions in the exposure draft is the proposed requirement to report Advisory Only Assets separate from GIPS Firm assets.

This 2020 GIPS provision is not a big departure from prior guidance.  It is important, however, to understand if you and your colleagues—and regulators—use the term “advisory only” assets differently than it is used in the 2020 GIPS Glossary.  This article will define the terminology and help you assess the impact of the new terminology for your firm, if any.  We’ll also line up the GIPS terminology with regulatory assets under management and provide clarifying examples.

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GIPS® Compliance, Marathons & Significant Events

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A GIPS Disclosure Analogy

I’ve been helping firms become GIPS compliant and have been running marathons for over 20 years, and last month, I just ran my fastest half marathon ever.  The marathon was an inaugural Mt. Hood Revel run, and my husband was getting texts during the event tracking my bib number:

“One quarter done with a pace of 8:05 min/mile. Projected finish time of 3:33:26.41 at 9:05AM.”

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