former

Don't know if this helps, but I'm looking at the Asset Manager Code right now...

Per the AMC:
"At a minimum, Managers should provide clients with gross- and net-of-fees returns and disclose any unusual expenses."

Windjam

I`m not getting this. Aren`t you supposed to disclose BOTH!

strikethree

AMC- disclose both- REQUIRED

GIPS- you can present either, but gross is RECOMMENDED

GIPS, P/E: net of fees and gross of fees SI-IRR

Wrap Fees/SMA- must present returns after deduction of all BUNDLED FEES (this makes sense if you think about it)

ll11

"Presentation and Reporting — Recommendations
5.B.1 FIRMS SHOULD present GROSS-OF-FEES returns."


So do they mean that IN addition to the net of fees, you should present gross of fees?
And if it is true that it is Net-OF fees , the reason should be that they are always lower, right?

bkballa

In general, its either gross or net , but you have to disclose which one. However, they RECOMMEND that you use gross.

For RE, its also gross or net.

For Private Equity, its both gross and net .

mik82

That is what I had understood as well. I am certain with AMC.

Zestt

As odd as it sounds, I think GIPS requires either or, but Asset Manager Code of Professional Conduct requires both. I had the same confusion but that is what I concluded...

lcw77

I think you can show either and just have to cleary disclose and labelle. For PE its net and gross is must.