Excellence Through GIPS Compliance

Course overview

The “Global Investment Performance Standards” (GIPS) are a collection of voluntarily established rules by investment management firms all around the world. Asset owners, verifiers, investment companies, etc. may all benefit from GIPS’ promotion of openness through full disclosure and accurate portrayal of investment performance.

Investment firms can evaluate their performance against that of rivals thanks to GIPS. The consistent presentation of investment performance data encourages investors to make poor investment choices and promotes both successful domestic and international trade.

You will gain all the knowledge and expertise of GIPS needed to function and remain relevant in a fiercely competitive corporate climate from this Trainee Bee training course. The course provides broad information, such as the background of these standards and a comparison of the rules among different releases and versions.

Introduction

The Global Investment Performance Standards (GIPS) is a voluntary set of standardized investment performance presentations and ethical standards for firms that manage investments on behalf of clients, including investment advisors, asset managers, mutual funds, and other investment professionals. The standards are designed to help ensure that investment performance presentations are fair, accurate, and comparable across asset management firms. The standards are administered by the CFA Institute, a global association of investment professionals. The objective of GIPS is to improve the quality of investment performance reporting and to create a level playing field to allow investors to make more informed decisions when evaluating investment products. GIPS offers investment firms a consistent approach to present performance results, thereby providing an objective and reliable basis for comparison across firms.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

Learning Objectives

Upon completing Excellence through GIPS Compliance, participants will be able to:

• Comprehensive information and understanding of GIPS and associated ideas
• The expertise, assurance, and understanding necessary to instruct other professionals on crucial GIPS-related topics
• The knowledge and expertise necessary to effectively operate in any area of employment involving investment performance, whether as an asset owner, an investment organization, or a verifier.
• The attention to detail and exposure to examine current organizational procedures and standards to determine whether they need to be revised in order to be GIPS compliant; awareness and comprehension of how to effectively use GIPS compliance to attract potential investors and expand one’s business exponentially.

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Project-based learning
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.
• Presentations – Participants will be presented with multimedia tools such as videos and graphics to enhance learning. These will be delivered engagingly and interactively.
• Group discussions – The course will incorporate group discussions and debates to encourage active participation and collaboration.
• Case studies – Participants will be presented with realistic scenarios and case studies that demonstrate effective strategies related to the topic. These activities will encourage participants to think critically and apply their knowledge to real-life situations.

Training Medium

This Excellence through GIPS Compliance training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• Why is GIPS important? What is it?
• What are the key components of a GIPS-compliant presentation?
• How the standards enforced and what are the possible consequences for failing to comply?
• What procedures need to be in place to ensure compliance with GIPS compliance?
• What capabilities do I need to understand in order to comply with GIPS?
• Are there any alternative approaches to GIPS compliance?

Course Modules

This Excellence through GIPS Compliance covers the following topics for understanding the essentials of the Agile Workplace:

Module 1 – An Overview of Global Investment Performance Standards (GIPS)

• History
• Definition and administration
• The purpose and objectives

Module 2 – Benefits of GIPS Compliance for Asset Owners

• Voluntary dedication to performance comparability and transparency
• Observance of international best practices for valuing investment performance
• Strong investment performance methods and policies should be established.
• Same performance criteria are used when employing outsourced investment managers.

Module 3 – Benefits of GIPS Compliance – Verifiers

• Streamlining verification advice
• Language in the verification report, updated
• New planning criteria for verification
• Details of the mandatory testing processes

Module 4 – Benefits of GIPS Compliance for Firms

• Greater investment interests and trust
• Comparability of performance
• Fair and ethical behavior among competitors Prospects for the world

Module 5 – GIPS Sections for Firms

• Basics of compliance
• Data entry and computation techniques
• Upkeep of pooled and composite funds
• Report on the composite time-weighted return
• Money-weighted return report for the aggregate

Module 6 – Significant variations between GIPS 2010 and GIPS 2020

• Separate reporting for pooled versus composite funds
• Less emphasis on asset classes and more on portfolio structure
• Time-weighted funds are less flexible to utilize than money-weighted funds.
• Being able to announce carved-out performance using allotted funds

Module 7 – Observation Phases

• Planning Testing
• Wrapping up the testing process
• Letter of management representation

Module 8 – Verification Protocols for GIPS

• Recognize the company’s policies and processes.
• Recognize valuation techniques and performance metrics
• Review the firm’s assets and definition
• Review the existence and ownership of the asset.

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• What understanding of financial markets and economic principles is required to be affiliated with the GIPS standards?
• What is the different performance calculation requirements expected from a firm affiliated with GIPS?
• How firms are supervised and held accountable to the GIPS standards?
• How is data related to a firm’s investments tracked, recorded, stored, and presented under GIPS standards?
• How does GIPS accommodate different types of investments, such as derivatives, equity, and fixed income?

Lessons Learned

The most important lesson to be learned from GIPS is that performance measurement should be conducted in a fair, consistent, and transparent manner. These principles should be applied to all investments, regardless of size, style, or duration of performance. By accurately measuring the performance of investments, and reporting and presenting the findings accordingly, informed decisions can be made regarding the performance of a portfolio and the allocation of assets across it.

“Since the global stage is open, make sure you adhere to the highest standards with GIPS. If you follow GIPS guidelines, your investments will succeed.”