GIPS, PE Return Measures..

Might ask about these tomorrow, if really cruel… Do I understand correctly that the main difference between (1) and (2), below, is that (2) adjusts for the tax basis generated by fund withdrawals (i.e. what sponsor can’t control)? I took notes on these return measures, several weeks back: (1) Pre-liquidation, after-tax return … no adjustment for non-discretionary asset sales: = (total return, Modified Dietz) + (actual cash taxes paid) divided by (initial market value - sum, weighted cash flows in) (2) To adjust for non-discretionary asset sales: = (total return, Modified Dietz) + Adjustment Factor divided by (initial market value - sum, weighted cash flows in) where Adjustment Factor = (net cash outflows) * (weighted avg. cap gains tax rate) * (Gain Ratio) Gain Ratio = (realized + unrealized cap gains) divided by (ending market value + net cash outflows)

wtf…i just got killed on the gips in sample 2 and that is no where near what you have here.

i wouldn’t worry about it that much… think these formulas are low-probability material.

What I want to say about GIPS, Ethics, Corporate Governance, AMC is not repeatable. If only our employers, who one way or another have supported us through this process realised how much of what we are learning has no chance of EVER EVER EVER being applied in a value-adding manner.

what kills me about GIPS is, it’s VOLUNTARY standards… not mandated. yet we are given a level of material requiring us to become experts.

Neveruse_95%_everagain Wrote: ------------------------------------------------------- > what kills me about GIPS is, it’s VOLUNTARY > standards… not mandated. yet we are given a > level of material requiring us to become experts. Voluntary…just like registering for the program!