What does GIPS require in a composite performance presentation?

Question

AcadiFi · Accepted Answer

The Global Investment Performance Standards (GIPS) require firms claiming compliance to provide prospective clients with a compliant composite presentation containing at minimum:

**Required numerical data (at least 5 years, building to 10):**
1. Annual composite gross and/or net returns
2. Benchmark returns for same periods
3. Number of portfolios in composite at period end
4. Composite assets at period end
5. Total firm assets at period end (or firm assets as % of total)
6. Measure of composite 3-year ex-post annualized standard deviation (required since 2011)
7. Dispersion of returns within composite (equal-weighted or asset-weighted)

**Required disclosures:**
- Firm definition and firm history
- Composite definition and creation date
- Benchmark description and rationale
- Fee schedule
- Currency used
- Use of leverage, derivatives, short positions if material
- Minimum asset level for inclusion
- Material errors corrections
- Verification status

Example: Crosswater Capital Management presents its 'Crosswater Global Growth Equity' composite for 2021–2025. Presentation shows gross returns 11.8%, 18.2%, −14.6%, 22.4%, 14.9%; net returns reflecting 75bp management fee; MSCI ACWI Growth benchmark; 24 portfolios and $2.8B composite assets at 12/31/2025; firm assets $14.2B; 3Y ex-post std dev 16.4% vs benchmark 15.1%; asset-weighted dispersion 0.8%.

```mermaid
flowchart TD
  A[GIPS Presentation] --> B[Required Numerics]
  A --> C[Required Disclosures]
  B --> D[5-10 yr returns]
  B --> E[Risk measures]
  B --> F[Composite/firm assets]
  C --> G[Firm/composite defs]
  C --> H[Benchmark rationale]
  C --> I[Fees/errors]
```

Failure to include required elements means the firm cannot claim GIPS compliance for that presentation, exposing it to regulatory and reputational risk. Prospective clients should be provided the full compliant presentation before any investment decision.

What does GIPS require in a composite performance presentation?

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