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2020 GIPS® Standards – Bridging the Fund vs. Composite Divide

Key Conceptfor 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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A 2020 GIPS Standards Game-Plan

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

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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Multi-Asset Composite Membership Changes – GIPS® 2020

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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GIPS® Compliance, Marathons & Significant Events

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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