If you’re a Level III Candidate looking for a better breakdown on Global Investment Performance Standards (GIPS®), or if you’re looking to learn how to best apply the GIPS Standards or get the most out of them for your firm and clients, then this event is for you.

The GIPS Standards were referenced in the SEC’s marketing rule for investment advisors 26 times, and private fund presentations are now required by FINRA to show GIPS compliant capital funding ratios. With practical lessons for every skill level and expertise, this event offers an in-depth overview of the GIPS standards and helps participants master the fundamentals.

This discussion will follow CFA Institute’s Learning Outcome Statements for 2024 Level III CFA Curriculum Study Session 16, Reading 35:

• Discuss the objectives and scope of the GIPS standards and their benefits to prospective clients and investors, as well as investment managers;
• Explain the fundamentals of compliance with the GIPS standards, including the definition of the firm and the firm’s definition of discretion;
• Discuss requirements of the GIPS standards with respect to return calculation methodologies, including the treatment of external cash flows, cash and cash equivalents, and expenses and fees;
• Explain requirements of the GIPS standards with respect to composite return calculations, including methods for asset weighting portfolio returns;
• Explain the meaning of “discretionary” in the context of composite construction and, given a description of the relevant facts, determine whether a portfolio is likely to be considered discretionary;
• Explain the role of investment mandates, objectives, or strategies in the construction of composites;
• Explain requirements of the GIPS standards with respect to composite construction, including switching portfolios among composites, the timing of the inclusion of new portfolios in composites, and the timing of the exclusion of terminated portfolios from composites;
• Explain the requirements of the GIPS standards with respect to presentation and reporting;
• Explain the conditions under which the performance of a past firm or affiliation may be linked to or used to represent the historical performance of a new or acquiring firm;
• Explain the recommended valuation hierarchy of the GIPS standards;
• Discuss the purpose, scope, and process of verification.