Overview of the Global Investment Performance Standards

Section 0 of GIPS

Fundamentals of Compliance (defining firm, requirements, responsibilities)

Section 1 of GIPS

Input Data (accurate data, define composites & benchmarks ex-ante)

Section 2 of GIPS

Calculation Methodology

Total return under GIPS

Realized & unrealized capital gains/losses + income (interest, dividends)

Section 3 of GIPS

Composite Construction

Composite return calculation

Asset-weighted average of all portfolios in the composite

Section 4 of GIPS

Disclosure

Required disclosures

Benchmark, currency, composite description, claim of compliance

Section 5 of GIPS

Presentation & Reporting

Rule for reporting returns

Cannot use a proxy for annual returns

Publicly traded real estate securities included?

No

CMBS included?

No

Private debt investments included?

No

Open-end funds included in private equity?

No

Evergreen funds included in private equity?

No

Examples of private equity investments

Venture capital, mezzanine financing, fund of funds

SMA meaning

Separately Managed Account

Wrap/bundled fees

One fee covering multiple services (management, trading, etc.)