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Feb 26, 2010 12:47 am

So my firm is wrapping up the whole GIPS process (currently in the verification process), and it has been quite an adventure.  Have any of you guys gone through it already, or thinking about it?

Feb 26, 2010 1:43 am

I am thinking about it.

Feb 26, 2010 4:12 pm

What is your reasoning for it, and have you met with anybody about it yet?  If I remember correctly, your shop brings in additional advisers.  Do all of you guys run specific models, or does it matter which adviser it is?

  Somewhere on this forum, someone (not sure who), quoted around $600,000 to become GIPS compliant.  Based off of my current situation, I'm wonding what that figure includes.
Feb 26, 2010 4:42 pm

My eventual goal is to have an SMA firm (whether in place of or as part of my existing firm, I have yet to figure out).  A lot of IA firms require GIPS verification before they will allow you to sell your product to them.  I assume this is why your firm is doing it?

Most of my reasoning comes from the CFA exams.  Everybody runs my models right now.  This is not something I’m looking at doing say tomorrow, but in the future.

I thought it was around $300k, and I’m not sure what it entails.  I can ask for a quote if you want and let you know.

Feb 26, 2010 4:54 pm

Our firm is doing it more to keep existing open doors open (in the SMA world and institutional).  At least that was the main reason, but as we progressed through the process, it turned more into cleaning up shop and getting our ducks in a row.  We have purchased a series of firms along the way, so performance data was an issue for us.

  $300k sounds about right, but when looking at various consultants - what you get for that price varies greatly. I would say the worst candidate wanted to get paid to "supervise" our inhouse team that does the composite creation and performance calculations on historical data.  The consultant we went with actually rolled up his sleeves and did all the work himself - which included drafting GIPS Policies and Procedures for us, laying out composite inclusion criteria for us (which was tweaked along the way), going through 10 years of portfolio accounting data and cleaning it up, moving all account into the proper composites, testing data, preparing GIPS compliant ad info, and currently working with the GIPS Verifying firm.  That is at least what I'm aware of him doing.  Nice guy to, easy to BS with.