GIPS2020 Changes Series – #12 Asset Owner Composite Money-Weighted Return Report


The Additional Composite Money-Weighted Return Report is the twelfth section of the GIPS 2020 Exposure Draft.

The Standards here are of similar or the same wording as the associated Firm Standards.

Key Different Standards

The key Standards worth noting here are:

1. The requirement here for Since-Inception Money-Weighted Returns is also either from inception or for the longest period that the Asset Owner has records for (12.A.1).

2. The other is the requirement that ‘Full-Gross-of-Fees Returns’ can only be presented as Supplemental Information (12.A.6).

Comments Requiring Feedback

Three comments require your feedback in this section:

1. The first one requests your feedback on whether the requirement to present only Since-Inception Money-Weighted Return adequate and whether the requirement to present from the longest period the Asset Owner has records for is also appropriate (Comment #42).

2. The second comment requests your view on whether Asset Owners should be required to present information about Committed Capital, Distributions and other multiples only as of the most recent annual period end (Comment #43).

3. The last comment request is on whether the use of sunset provisions are appropriate and whether the identified sunset provisions are exhaustive (Comment #44).

How to Send in Your Comments

We have made it easy for you to go through the comments in bite-sizes and to submit your responses quickly by completing comment survey forms covering the feedback areas requested and more. At the end of the commenting period (December 31, 2018), we will compile all the comments received and forward to the GIPS Organization for review.

Sign-up for free on our Composite Insider platform here to do so.

Alternatively, you can send your written responses to the GIPS Organization.

In the next post, we review the changes to the last section of the GIPS Expsosure Draft, GIPS Advertising Guidelines.


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