Global Investment Performance Standards (GIPS)

CFA Level I Financial Reporting & Analysis · 4:17

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Lyrics

[Verse 1]
Investment firms need standards clear
To show their performance year by year
GIPS will guide the way they report
Making comparisons fair across the board
Group portfolios with strategies the same
Into composites, that's the name of the game

[Chorus]
GIPS compliance, show me the way
Time-weighted returns for every display
Five years minimum, benchmarks too
Disclosure requirements, verification true
GIPS compliance, industry wide
Standardized performance you can't hide

[Verse 2]
Time-weighted returns are what we need
Not money-weighted when clients add or feed
Cash flows from clients shouldn't affect
The manager's skill that we want to reflect
Calculate returns without the noise
Time-weighted gives us the clearer choice

[Chorus]
GIPS compliance, show me the way
Time-weighted returns for every display
Five years minimum, benchmarks too
Disclosure requirements, verification true
GIPS compliance, industry wide
Standardized performance you can't hide

[Bridge]
Real estate needs special care
Private equity values aren't always there
Independent verification is the key
Third party review for all to see
Firm-wide compliance, not just one part
GIPS standards right from the start

[Verse 3]
Present your data for five years or more
Since inception if that's less than four
Benchmarks help investors compare
Disclosures make everything fair and square
Verification gives the final seal
GIPS compliance keeps it real

[Final Chorus]
GIPS compliance, show me the way
Time-weighted returns for every display
Five years minimum, benchmarks too
Disclosure requirements, verification true
GIPS compliance, industry wide
Global standards we can trust and rely

[Outro]
Firm-wide composites all aligned
GIPS standards keep performance refined

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