GIPS

Question 1

Why GIPS created?

Answer 1

Establish standardized, industry-wide approach for presenting historical investment results - fair & full disclosure

Question 2

Who GIPS apply to?

Answer 2

Voluntary, asset managers only, firm-wide (not single product/composite)

Question 3

Who benefits from GIPS?

Answer 3

prospective investors with increased confidence

Question 4

Construction and purpose of composites

Answer 4

Aggregation of portfolios managed according to similar investment mandate, objective, or strategy - ALL actual, fee paying, discretionary portfolios managed with same mandate/objective/strategy

Question 5

Verification of GIPS compliance

Answer 5

Self-regulating generally, but may hire third-party to verify ALL portfolios in firm

Question 6

Key features of GIPS standards

Answer 6

Fair & full disclosure of performance, complying with recommendations, include all actual fee paying discretionary portfolios (no cherry picking), accurate data, full compliance

Question 7

GIPS Compliance

Answer 7

Define firm, compliance presentations, adhere to applicable law, not false/misleading info

Question 8

Historical Performance under GIPS

Answer 8

Minimum 5 years compliant with GIPS standards

Question 9

Implementing GIPS in countries with existing standards

Answer 9

Firms encouraged to comply with GIPS and local applicable law/regs

Question 10

Conflict of GIPS standards with local applicable law/regs

Answer 10

Comply with local applicable law/regs and disclose conflict

Question 11

9 sections of GIPS

Answer 11

Fundamentals of compliance, Input data, Calculation Methodology, Composite Construction, Disclosure, Presentation & reporting, Real estate, Private Equity, Wrap Fee/Separately Managed Account Portfolios