Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

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1 Result

Archived

Effective: 1 June, 2005 - 31 December, 2019

Categories: Fees

Source: Investment Performance Council (IPC)

Our firm manages private equity strategies and it is not clear how to provide a fee schedule appropriate to the composite. Fund-of-funds do not have their ‘own’ fee schedule, what are we required to provide?

Within the fund-of-funds structure, there are two levels of fees. The fund-of-funds manager normally charges fees within the fund according to a schedule. This is the schedule that must be disclosed under the GIPS requirement. In addition, the underlying funds charge fees within their funds which vary according to the funds’ strategy and size and include a performance element. These fees on underlying funds would be very difficult to separate out for a composite, but are fully taken into account in the fund-of-funds performance.