Global Investment Performance Standards ( GIPS )
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…