I read GIPS today and took notes, so I hope we all agree on this: AMC: Gross AND Net GIPS General Provisions: Gross OR Net, but Gross recommended P/E: Gross AND Net P/E Fund of Funds: Gross (while presentation should be gross of management fees, it should still be net of parternship, fund, expenses, and carried interest–and of course, trading expenses) Real Estate: Gross OR Net Wrap fee/SMA: Net Chain linking noncompliant returns: 1/1/2000 for Generral GIPS, 1/1/2006 for RE, P/E, SMA
We can chainlink not compliant returns only if they occur pre-2000…otherwise, no go. Wrap/SMA - you can present gross if you can somehow break out trading expenses from the bundled fee. IF you cant break um out, you have to report net and remove the entire bundled fee.
yes i agree…with the chainlinking i agree too, thats what i meant when i wrote 1/1/2000…this is the date after which compliance must be shown
the show NY Wrote: ------------------------------------------------------- > I read GIPS today and took notes, so I hope we all > agree on this: > > AMC: Gross AND Net > GIPS General Provisions: Gross OR Net, but Gross > recommended > P/E: Gross AND Net > P/E Fund of Funds: Gross (while presentation > should be gross of management fees, it should > still be net of parternship, fund, expenses, and > carried interest–and of course, trading > expenses) > Real Estate: Gross OR Net > Wrap fee/SMA: Net > > Chain linking noncompliant returns: 1/1/2000 for > Generral GIPS, 1/1/2006 for RE, P/E, SMA I thought we decided from the sample exam that net of fees was required under GIPS but gross is recommended.
No, read the actual GIPS report. Many of their samples have gross of fees only. I am fairly sure the sample was written not by CFAI.
^^ Really…never heard that. Always thought either so long as disclosed.
paraguay—you agree with the fund of funds disclosure?
Why doesn’t CFAI just make it required to report both net and gross then it’ll be easier for you, me, them, everyone.