With the release of GIPS 2020 came another change to the standards on carve-outs, marking the second time in which the guidance has changed. So, we thought it might be worthwhile to revisit the history of carve-outs guidance within the GIPS Standards.
A Brief History
Initially, the GIPS…more
The 2020 edition of the Global Investment Performance Standards (GIPS 2020) was released on June 30, 2019 and is effective beginning January 1, 2020. GIPS 2020 introduced a significant number of additions and changes, the most notable of which can be found in our “Top 5 Things You Need to…more
The release of the GIPS 2020 Exposure Draft is an exciting milestone in the development of the Global Investment Performance Standards (GIPS). The volunteers and CFA Institute staff worked hard to assemble performance presentation standards that reflect industry best-practices and that are useful and practical.
The GIPS 2020 Exposure…more
The next version of GIPS is coming. A draft is expected to be released by the end of August with a comment deadline of December 31, 2018. After comments and feedback are received, the target issue date for the final version is June 30, 2019 with a planned effective date…more
In order to address the question of whether or not you should perform operational due diligence as part of your process to evaluate an investment manager, a broad analysis of the primary underlying risks is helpful. There are two main types of risk that investors need to assess: investment risk…more
The year is quickly nearing an end, which will bring a new set of pronouncements that will become effective in 2018. One of those pronouncements is Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-01: Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.
The…more
Verifier independence is not a new topic within the GIPS Standards. In 2005, the GIPS Executive Committee released the Guidance Statement on Verifier Independence, which laid the foundation for verifier independence as well as outlined the minimum guidelines for verification firms and clients. The newly-proposed Guidance Statement on Verifier…more
The GIPS Technical Committee is seeking comments on a newly-proposed Guidance Statement on Risk and how it relates to the presentation of risk, both quantitatively and qualitatively within the compliant presentation. The Guidance Statement will address when and where risk-related information is appropriate, recommended, and required to be…more
Maintaining foreign bank accounts can be tricky, as there are multiple reporting rules that need to be followed. The U.S. government continues to make foreign financial information filings more expansive and complicated. In fact, not filing these forms can result in penalties that may exceed the values of the…more
Through the course of our work in the investment industry, we discuss fee calculations with both investment managers and investors on a regular basis. We have several clients who have engaged us to perform fee recalculations on their behalf, and we have seen an increase in the number of institutional…more