GIPS

[zxfmontreal]

0.A.7: statements referring to the calculation methodology as being “in accordance”, “in compliance” or “consistent” with GIPS, or similar statements, are prohibited.
Why? What does this mean?
0.A.8: Statements regerring to the performance of a single, existing client portfolio as being “calculated in acordance with the GIPS” are prohibied, except when a GIPS-complain firm reports the performance of an individual cleint’s portfolio to that client.
Does this mean a firm cannot refer a single portfolio to be in compliance?
0.A.9: Firms must make every reasonable effort to provide a compliant presentation to all PROSPECTIVE CLIENTS…
How about existing clients?
0.A.13: For periods beginning on or after 1 January 2011, TOTAL FIRM ASSETS must be the aggregate FAIR VALUE of all discretionary and non-discretinoary assets managed by the firm. This includes both fee-paying and non-fee-paying portfolios.
I thought -non-discretionary assets cannot be included????

 

[S2000magician]

zxfmontreal wrote:0.A.7: statements referring to the calculation methodology as being “in accordance”, “in compliance” or “consistent” with GIPS, or similar statements, are prohibited.
Why? What does this mean?

Either your entire presentation complies with GIPS, or else it doesn’t. You cannot segregate portions of your presentation and say that they comply with GIPS.

zxfmontreal wrote:0.A.8: Statements regerring to the performance of a single, existing client portfolio as being “calculated in acordance with the GIPS” are prohibied, except when a GIPS-complain firm reports the performance of an individual cleint’s portfolio to that client.
Does this mean a firm cannot refer a single portfolio to be in compliance?

Yes. Either the whole presentation complies with GIPS, or else it doesn’t.

zxfmontreal wrote:0.A.9: Firms must make every reasonable effort to provide a compliant presentation to all PROSPECTIVE CLIENTS…
How about existing clients?

To existing clients, too.

zxfmontreal wrote:0.A.13: For periods beginning on or after 1 January 2011, TOTAL FIRM ASSETS must be the aggregate FAIR VALUE of all discretionary and non-discretinoary assets managed by the firm. This includes both fee-paying and non-fee-paying portfolios.
I thought -non-discretionary assets cannot be included????

Non-discretionary assets cannot be included in composites; they’re still included in Assets under Management.