Financial Education

Firms complying to Global Investment Performance Standards (GIPS(R)) must disclose whether the returns are being presented gross of fees (return on assets less direct trading expenses) or net of fees (gross return less management fees). Any other fees deducted should also be disclosed, along with the fee schedule appropriate to a given presentation.

Firms must also disclose:

• Their use of leverage or derivatives in sufficient detail to allow investors to identify the related risk
• Conformity with local laws that conflict with GIPS
• Any non-compliant performance records

Firms must show 10 years of GIPS compliant returns (or as many as are available if fewer than 10). This includes the annual return in each year, the number of portfolios and dispersion of returns in the composite (if 6 or more portfolios), the amount of assets in the composite, the total firm assets (or percentage represented by the composite), and the benchmark return.

For more information, see all articles on: Investment Returns, Performance Measurement, Portfolio Management

See also:

Global Investment Performance Standards (GIPS) Characteristics

Global Investment Performance Standards (GIPS)

Presenting Composite Returns Under Global Investment Performance Standards (GIPS)

Calculating Portfolio Returns Under Global Investment Performance Standards (GIPS)

Composite Portfolio Construction Under Global Investment Performance Standards (GIPS)