How to memorize GIPS required disclosures?

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lillilland

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Has anyone come up with an acronym or saying to remember these 26 disclosures? Do share :)
 
Well if you are hard pressed I have been using this:
……….F…ee schedule
……….@…use and extent of leverage
……….C…urency used for reporting perf
……….K…nown inconsistencies in exchange rates
……….M…inimum asset level if any
d……..E…tails of witholding on div, int, cg
……….F…irm definition
c……..O…mposite creation date
desc…R…iptions of composites
……….T…ypes of fees in bundle
w…….H…en gross fees, disclose other fees in addition to trading exp.
……….I…f composite has bundled fees % of comp in bundled fees
law….S… that differ from GIPS standards
……….C…learly label gross or net of fees
i………F… composite is redefined & nature (cannot change retro)
……….A…vailability of composite list
……….S…ignificant events useful for clients to interpret performance.
c………H…anges in composite name
………..@…if firm is redefined - date & reason
net…..T…fees, disclose other fees in addition to trading exp & mgmt fees.
………..D…isclose policy for cash allocation for carve outs prior to 1/1/10
………..U…se of subadvisors & periods
ad…….D…ditional info re: policies for calc returns avail upon request.
b………E…fore 1/1/00 any performance that does not comply, disclose period and why
……….?…
 
slouiscar is one of the few people I am legitimately scared of on this forum.
I think he is too smart to live peacefully in this world.
 
slouiscar,
wow I thought there cannot be a key for that freaking long list of disclosures …… and you came up with it!! pretty easyt one too
Thx
 
I had my notes in front of me and I still missed a couple… composite list, change in composite name.
Anyway, please keep in mind I was goofing around and I can’t imagine that is complete or accurate! To be serious, lilliland, I thought it is too long for me to memorize so in my notes I tried to break it into chunks and organize a list by disclosure type… fees, composites, dates, etc. then I only had to remember 4-5 types and 4-5 disclosures each… hoping that if they only ask for a few, I can remember a few+1…
 
The easiest way to memorize it is by breaking it up:
General
1. Definition of the firm
2. Date and reason for redefinition
3. Use of subadvisor if used (after 2006)
4. Periods and nature of non-compliant performance data (before 2000)
5. Any conflicts between GIPS and local law
6. The availability of a list and description of composites
7. Explanation of events that may help interpret performance data
8. Availability of additional info regarding calculation methodologies for performance data.
Composites
1. Description
2. Creation date
3. Date and nature for redefinition
4. Minimum size requirement for portfolios
5. Use of leverage or derivatives
6. Internal measure of dispersion and methodology used (not required for composites with less than 6 portfolios)
7. Exchange rate used
8. Inconsistencies with exchange rates
9. Any change in name
10. Whether last business day of the month or end of month was used for valuation date.
11. How cash is allocated to carve outs (someone confirm this one?)
Fees
1. Fee schedule
2. Whether returns are calculated gross or net
3. If gross then specify fees in addition to direct trading expenses
4. If net then specify fees in addition to direct trading expenses and management fees
5. Percentage of composite in bundled fee portfolios
6. Types of fees offered in bundled fee portfolios
7. Treatment of withholding taxes
This is how I do it. Some points can be in multiple categories but this works for me. The point is, break it up.
 
you guys are killing me - I have trouble remembering what G.I.P.S. stands for…
i’ve never seen or heard of a fund that follows GIPS - have any of you guys???
 
I have. My cousin works for a large RIA in the area and they are GIPS compliant and verified.
 
BlackRock presents GIPS compliant presentations and is also verified.
 
most well known firms and firms with significant size are compliant. if you find any firms that manage sizeable institutional money, chances are very, very good they are compliant. I look at managers all day and it is becoming rare that I find one that isnt.
edit: Im speaking generally about managers for SMA products. I am sure there are tons of mutual fund shops that are not.
 
wow - I’m amazed they get any business if they follow GIPS.
You mean they never carve out cash, shuffle accounts around, drop bad accounts, re-define composites, fiddle with size thresholds, change calculation methods when it suits, etc, etc, etc, ? What are they - saints?
Usually it’s the cleanest-looking operations that turn out to be the worst - there are a lot of Maddoffs out there….
 
I bet my cousin’s firm is wishing they weren’t compliant this year. ; )
 
our private equity firm is not GIPS compliant. too complex for small firms, and we don’t MTM for investors.
 
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