Global investment performance standards
D. Keycharacteristics （特点）
Theyare ethical standards, not legal standards.
Theyserve as minimum standards.
Theyrequire that investment managers present performance in the form of compositereturns, where a composite is defined as a group of portfolios that are managedwith the same strategy or objective. (We’ll discuss Composite in detail laterin this section)
E.Scope ( 范围)
Onlyinvestment management firms can claim compliance with the GIPSstandards. The Standards must be applied on a firm-wide bases, and afirm may claim compliance only when it has satisfied all the requirements ofthe GIPS standards.
Countryversion of GIPS (follow the higher)
II. PROVISIONS OF GIPS
The provisions for each section aredivided into Requirements and Recommendations. Firms must meet all therequirements to claim compliancewith the GIPS. Firms are stronglyencouraged to adopt and implement the recommendations to ensure that the firmfully adheres to the spirit and intent of the GIPS.
0. Fundamentals of Compliance:
critical issues that a firm must considerwhen claiming compliance with the GIPS are defining the firm, documenting firmpolicies and procedures, maintaining compliance with updates to the GIPS, andproperly using the claim of compliance and references to verification. The definitionof the firm is the foundation for firm-wide compliance and creates definedboundaries whereby total firm assets can be determined. Once a firm meets allof the requirements of the GIPS, it must appropriately use the claim ofcompliance to state compliance with the GIPS.
l Definition of the Firm — Requirements
TheGIPS standards must be applied on a firm-wide basis.
Firmsmust be defined as an investment firm, subsidiary, or division held out toclients or potential clients as a distinct business entity.
Totalfirm assets must be the aggregate of the market value of all discretionary andnondiscretionary assets under management within the defined firm. This includesboth fee-paying and non-fee-paying assets.
Firmsmust include the performance of assets assigned to a sub-advisor in a compositeprovided the firm has discretion over the selection of the sub-advisor.
Changesin a firm’s organization are not permitted to lead to alteration of historicalcomposite results.
l Definition of the Firm — Recommendations
Firmsshould adopt the broadest, most meaningful definition of the firm. The scope ofthis definition should include all geographical (country, regional, etc.)offices operating under the same brand name regardless of the actual name ofthe individual investment management company.