- 0. Fundamentals of Compliance- a. definition of firm b. document firm policies and procedures with respect to GIPS c. Comply with GIPS updates D. claim compliance in appropriate manner
- e. appropriate verification statement when third party verifier is employed
1. Input Data - Input data should be consistent for fair presentations
2. Calculation methodology - certain methodologies required for portfolio return calcs and certain for composite return calcs. Unifromity across firm is required
3. Composite construction - composite performance is based on performance of one or more portfolios that have same investment strategy. Composite returns are the asset-weighted average (not a simple average) of returns on portfolios that are included in composite.
4. Disclosures - Firm must disclose info about firm presentation and policies adopted by firm so that raw numbers presented in report are understandable. Some disclousres all firms must make, but some may not apply to all firms. If it is not required the firm does not need to include any statement regarding it.
5. Presenation and reporting - Investment performance must be presented according to GIPS.
6. Real estate - certain provisions apply to all real estate investments regardles s of level of control firm has over mangament of investment. Provisions apply regardless of whether or not investment is producing revenue or there is leverage.
7. private equity - PE investment must be valued according to GIPS Private Equity Valuation Principles unless investment is an open-end or evergreen fund. must include all investment in companies regardless of publicly traded, or stage of business.
8. Wrap fee/seperately managed acount porftolios ?