Overview of the Global Investment Performance Standards (GIPS) For Level III 2023 Exam
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 2023 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 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.
Kim Cash, CFA, CAIA, CIPM, CSCP is the Founder of Cascade Investment Compliance & Verification, a specialty consulting firm founded in 2017 to help asset managers and asset owners with their compliance and business growth objectives, providing GIPS compliance consulting, independent verification and educational workshops across the U.S.
Kim brings over 27 years of investment industry experience to each GIPS® verification. Since 1995, she has overseen—and been in the trenches with—performance and compliance projects to support hundreds of asset management firms implementing and maintaining compliance with the GIPS standards. She has examined thousands of investment strategies and composites and can speak to the unique challenges posed by complex strategies and firm and investment structures. Her educational workshops bring compliance to life with everyday insights, challenges and practical solutions for firms committed to following industry best practices.
Kim holds a Master of Science degree in education and has worked in the industry as a Consultant and Chief Compliance Officer for RVK, Inc., an SEC-registered investment advisor. Back To Top ^^
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This workshop is ideal for Level III Candidates and those looking for a better understanding in the Global Investment Performance Standards.
Dr. Lawrence Harris, CFA, PhD
James Lewis, CFA, CIPM
|As a participant in the CFA Institute Approved-Provider Program, the CFA Society of Los Angeles has determined that this program qualifies for 1.5 credit hour. If you are a CFA Institute member, CE and SER credit for your participation in this program will be automatically recorded.|