A video to help explain the difference: composite creation vs. composite inception date With the introduction of the 2020 version of the GIPS(R) Standards, a new requirement is surfacing: for firms to report the composite’s inception date. This is defined in the Standards’ glossary as “The initial date of the composite’s track record.” I may […]
Read MoreThings to know about incorporating mutual funds into a GIPS composite Many asset managers who are seeking compliance with the Global Investment Performance Standards (GIPS®) want to include mutual funds. While this is fairly easy to do, there are a few things that you should think about. Include in separate composites or with separate accounts? […]
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Fear not! I haven’t given up on my arguments against the use of the aggregate method to derive the extremely important composite returns (which are the bedrock of the Standards). I was conducting a GIPS(R) verification earlier this week, and stumbled upon the following on page 6 of the 2010 edition of the Global Investment […]
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One of our GIPS(R) (Global Investment Performance Standards) verification clients called to ask what’s the best practice for composite construction. Interesting question, I think. We first touched on the meaning of “best practice,” as it relates to the Standards, which is arguably an unknown, though I have concluded that it’s what the Executive Committee thinks […]
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I had a call yesterday with a client who wanted to know if they can show equal-weighted composites. Recall that GIPS(R) (Global Investment Performance Standards) requires composites to be asset-weighted (something which I have grown to consider perhaps not to be appropriate, but that will be taken up at length in an upcoming article). And […]
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