sucks.
ass.
just started GIPS and its terrible.
Are you guys cranking out the calcs in there as well? Have these been tested?
I actually like the calcs, at least they have some logic.
Not just rote memory involved in remembering what was valid in 2006, 2010, now, …
Overall, yeah, f*ck GIPS.
It’s really not that bad.
Okay, here’s GIPS in a nutshell. Needs to be firm wide (no individuals). Must be evaluated on a total return basis. Must be asset weighted using a TWRR. (Dietz and modified Dietz methods are stupid, but commit them to memory) At least one composite needs to include all discretionary fee-paying accounts. (Non-fee paying can be included if disclosed.) Income needs to be accounted when incurred (not received). Noncompliant years can be linked before 2000, but must be disclosed. Don’t forget to include a 3yr std dev of monthly returns. …and disclose everything!
Real estate and PE has some funky rules for you to remember. (Obviously that does not cover the extent of GIPS, but if it helps you guys pick up a couple more points on the exam, it’s more effective than cursing about it). Yeah, it’s a pain to remember, but introducing a standardized measurement and performance presentation process really does make a lot of sense!
its not too bad once you do a couple of examples. The questions are all roughly the same