GIPS – is a standard for firms calculates and presenting investment results to clients.

Core Principles Of GIPS :

1. Fundamentals of compliance – The definition of firm and the firm’s definition of discretion . This is critical to ensure comparison across different firms .

2. Input Data – consistency is key . Very specific rules around valuation etc .

3. Calculations Methodology – Certain calculation methodology has to be used for comparability.

4. Composite Construction – Aggregation Of similar portfolios.

5. Disclosure- specific disclosure requirements for compliance.

5. Presentation and Reporting- Standards exist around even how you present the information.

6. Real Estate/ Private Equity And Separately Managed Account Portfolios– These three asset types have additional special rules against them .

There are also very specific guidelines against advertising and the firms chooses for verification of GIPS compliance.