The first and only comprehensive explanation of GIPS, including how to comply with and implement themWhile the CFA Institute has published Global Investment Performance Standards (GIPS) for years, there has never been a serious discussion of their implementation and best use.In this new book, that void is filled, and you'll quickly discover how to calculate, present, and interpret investment performance conforming to standards that are currently used in over thirty countries worldwide. Covering both the mathematics of relevant investment statistics and the policies and procedures for achieving and maintaining compliance, this book is a comprehensive guide to successfully using GIPS standards in today's turbulent investment environment.* Chapters include information on GIPS fundamentals, performance composites, risk and dispersion measurement, and much more* Examples are provided throughout, and supplemental formulas make the book usable as a reference* Provides the detailed knowledge currently needed by a large group of investment professionalsIf you're in the field of finance, Complying with the Global Investment Performance Standards (GIPS) is a book you need to read.

About the Authors xiPreface xiiiAcknowledgments xvIntroduction xviiPART ONE: Explanation of the GIPS StandardsCHAPTER 1. Fundamentals of Compliance 3Scope of the GIPS Standards 3History of the GIPS Standards 4Governance of the GIPS Standards 5Organization of the GIPS Standards 7Fundamentals of Compliance 8Summary 12CHAPTER 2. Defining the Firm and Composites 13Defining the Firm 13Defining Composites 23Summary 50PART TWO: The Methodology for Calculating ReturnsCHAPTER 3. Portfolio Return Measurement 53Single Period Rate of Return 54Time Value of Money 63Performance of the Investor: Money Weighted Returns 67Internal Rate of Return 71Performance of the Investment Manager: Time Weighted Returns 77Portfolio Return Calculations for the GIPS Standards 82Summary 90CHAPTER 4. Composite Return Measurement 91Composite Constituents 91Composite Returns 93Single Period Composite Return Considerations 97Multi-period Composite Returns 100Summary 107CHAPTER 5. Dispersion and Risk Measurement 109Internal Dispersion 109Equal Weighted Dispersion 111Asset Weighted Dispersion 114Risk 119Summary 137PART THREE: Reporting and Maintaining Compliance with the GIPS StandardsCHAPTER 6. Disclosing and Advertising Composite Performance 141Required Numerical Information 141Required Disclosures 149Length of Time for Disclosures 168Presentation and Disclosure Recommendations 168Supplemental Information 170GIPS Advertising Guidelines 171Summary 177CHAPTER 7. Wrap-Fee/SMA, Private Equity, and Real Estate 179Wrap-Fee/Separately Managed Accounts 180Private Equity 188Real Estate 198Summary 203CHAPTER 8. Maintaining Compliance with the GIPS Standards 205Organization and Oversight 205Return Calculation 211Error Correction 215Managing Composites and Presentations 220Summary 226CHAPTER 9. Verification 227Verification 228Performance Examinations 229Verification Considerations 230Required Verification Procedures 234The Verifier's Report 241Preparing for Verification 241Summary 245Index 247