I was trying to find language regarding how often a firm should provide reports to clients, but I cannot find it. I know valuation (for non- RE and PE) is to be done monthly, and I believe you have to provide client annual GIPS-compliant reports. Is there any other language besides that, such as providing reports on a reasonable basis?
You need to report performance to clients at least quarterly and within a reasonable time. Which is considered between 2-3 weeks
Ok that sounds right, thanks dude!
0.A.9 FIRMS MUST make every reasonable effort to provide a COMPLIANT PRESENTATION to all PROSPECTIVE CLIENTS. FIRMS MUST NOT choose to whom they present a COMPLIANT PRESENTATION. As long as a PROSPECTIVE CLIENT has received a COMPLIANT PRESENTATION within the previous 12 months , the FIRM has met this REQUIREMENT. 0.B.4 FIRMS SHOULD provide to each existing client , on an annual basis , a COMPLIANT PRESENTATION of the COMPOSITE in which the client’s PORTFOLIO is included. I bolded for emphasis
^ this doesnt sound right to me…
GIPS requires monthly reporting
Asset Manager Code requires quarterly
Now I’m confused again haha. mcap11, I don’t think GIPS requires monthly because there was a question on one of the same tests that I missed it because I thought it was monthly. I think you are right that Asset Manager Code requires quarterly . . . I guess maybe GIPS has no requirement other than annually?
was that on an exam that was prior to 2010?
i think maybe :
compliant presentation of composite for clients’portfolio [GIPS]: annual
performance presentation [GIPS]: monthly
performance presentation [AMC] : quarterly
^^ this is what I think as well
My understanding (GIPS) is that you have to use monthly returns for purposes of calculating account performance (except in cases of large cash flows, which require intra-month revaluing, linking). The actual reporting of account-level returns to clients is not specified - only annual composite performance is specified.
I think MikeDouglas is correct. In a practical matter, one of our managers sends us annual GIPS compliant reports . . . we also get quarterly reports from them but I don’t believe they are GIPS compliant. I just pulled out the material and they have language that reads:
“One of the requirements of the standards is to annually provide all existing clients with a compliant presentation of the composites in which the clients’ portfolios are included.”
I think the requirements are:
Asset Manager Code: Quarterly