This term is defined in the GIPS 2020 Exposure Draft as “For an ASSET OWNER, the return on investments that reflects the deduction of only TRANSACTION COSTS. ”
Key Points about This Term
- This term is new in the Global Investment Performance Standards (GIPS) vocabulary.
- It comes along with the incorporation of specific Standards for Asset Owners in GIPS2020 as one of the variations of returns Asset Owners are required to present.
- Fun Fact – It appears three (3) times in the Exposure Draft, including its appearance in the definitions section.
- Possible Evolution under new Standards – Likely here to stay as part of the Asset Owner section of the Standards.