#16 GIPS Advertisement Full Definition This term is defined in the GIPS 2020 Exposure Draft as “An advertisement by a GIPS-compliant FIRM or ASSET OWNER that adheres to the REQUIREMENTS of the GIPS Advertising Guidelines. ” Key Points about This Term This term is new in the Global Investment Performance Standards (GIPS) vocabulary. It comes [...]
#15 Full Gross-of-Fees Return Full Definition 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 [...]
#14 Fixed Life Full Definition This term is defined in the GIPS 2020 Exposure Draft as “Having a pre-determined, finite investment time horizon. ” Key Points about This Term This term is not exactly new in the Global Investment Performance Standards (GIPS) vocabulary. It has been in the Private Equity provisions of the [...]
#13 Fixed Commitment Full Definition This term is defined in the GIPS 2020 Exposure Draft as “Having a pre-determined amount of COMMITTED CAPITAL.” Key Points about This Term This term is not exactly new in the Global Investment Performance Standards (GIPS) vocabulary. It has been in the Private Equity provisions of the GIPS [...]
#12 External Valuation Full Definition This term is defined in the GIPS 2020 Exposure Draft as “An independent assessment of value performed by an external third party” Key Points about This Term This term is not new at all in the Global Investment Performance Standards (GIPS) vocabulary! It was, however, limited to the Real Estate [...]
#10 Expense Ratio Full Definition This term is defined in the GIPS 2020 Exposure Draft as “The ratio of total POOLED FUND expenses to average net assets. The EXPENSE RATIO SHOULD NOT reflect TRANSACTION COSTS.” Key Points about This Term This term is new in the Global Investment Performance Standards (GIPS) vocabulary. Its use has come [...]
#9 Crystallization Period Full Definition This term is defined in the GIPS 2020 Exposure Draft as “The period over which PERFORMANCE-BASED FEES are considered earned by the FIRM or ASSET OWNER and can no longer be reversed under the terms of a CLAWBACK provision. ” Key Points about This Term This is a new term in [...]
#8 Component Returns Full Definition This term is defined in the GIPS 2020 Exposure Draft as “The CAPITAL RETURNS and INCOME RETURNS of a PORTFOLIO, POOLED FUND, TOTAL FUND, OR COMPOSITE. ” Key Points about This Term This term is technically not new in the Global Investment Performance Standards (GIPS) vocabulary. Its use was however [...]
#7 Clawback Full Definition This term is defined as “The repayment of previously earned PERFORMANCE-BASED FEES resulting from subsequent underperformance.” in the GIPS 2020 Exposure Draft. Key Points about This Term This term is new in the GIPS although it is a common practice in the investment industry, particularly in the alternative investments sector. [...]
#6 Carried Interest Description Full Definition This term is defined as “Information about the features of the CARRIED INTEREST calculation, such as the HURDLE RATE, CRYSTALLIZATION PERIOD, and LOSS CARRYFORWARDS. ” in the GIPS 2020 Exposure Draft. Key Points about This Term This term is fundamentally not new and mainly relates to what information to [...]
