This is a comprehensive list of Q&A’s released as part of the GIPS standards Newsletter, organized by subject matter. As CFA Institute continues to add Q&As through the GIPS Standards Newsletter, we will continue to update this page.
GIPS 2010 Transition to GIPS 2020
Input Data and Portfolio Calculation
Read moreIt is hard to believe year-end reporting was completed just 3 months ago, and 2019 double-digit returns were something to be celebrated. It feels like the last 3 months have lasted the equivalent of 12 months. While first quarter 2020 was challenging for most firms on many levels, prospective investors are looking to asset managers for what to do now, how did the firm do during 1Q20 and what else does the firm bring to the table? It is a great time to show prospects and clients the firm’s commitment to industry best practices along with first quarter performance updates.
Read moreWith the 2020 edition of the GIPS standards, firms claiming compliance with the GIPS standards now have a choice of whether to use time-weighted returns (TWRs) or money-weighted returns (MWRs). This is fantastic news for the alternatives community. In the 2010 version of the GIPS standards, a series of since-inception MWRs was required for private equity funds, but no other investment structure or strategy had the option to present MWRs without also showing a series of annual TWRs.
Read moreIt’s that time of year for many firms to update annual performance statistics in compliant presentations and send them off to databases. For firms that want to jump right in and incorporate 2020 GIPS standards requirements into GIPS reports, 2020 Handbook guidance is imminent. Below are three year-end database questions you’ll want to get right:
Read moreFor firms electing to update reports with 2019 performance, the season for making required changes is upon us. What is really changing to the GIPS compliant presentation besides now referring to them as GIPS Reports?
Most significantly, there are now four compliant presentations, and each report has its own chapter in the 2020 edition of the GIPS standards. For firms already including limited pooled funds in composites, you can weigh the pros and cons of pooled fund versus Composite Reports in our article “Bridging the Fund vs Composite Divide” .
Read moreKey Concepts for Fund Managers
Firms managing only commingled funds often question the relevance of creating GIPS-compliant composites for pooled funds that are essentially already of asset-weighted, strategy specific “composites.” The 2020 GIPS standards added options that make GIPS compliance much more meaningful for managers of pooled funds, especially for firms with dozens of mutual funds and alternative investment strategies delivered in commingled fund vehicles.
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