Gross vs. Net of Fees net

cfa10yrplan

For GIPS...is net of fees REQUIRED while Gross of fees is RECOMMENDED?

Windjam

haha. I want to believe me. The Sample exam I just bombed on said so, but the book makes it unclear. I need definitive proof otherwise I'm going to cry like the CFA baby that I am.

Unforseen

it is found in Sample exam #2 (the mini tests you have to pay $40 bucks for)...

There was a question that specifically included this...

pennyless

yeah and I think if you remember gross=recommended not required you would have gotten it right no? i wanna say i remember that somehow. ahhh welll, not sure what to do now.

bodhisattva

1) under general GIPS provision(maybe including RE): composite returns for each year, identified as EITHER gross-of-fees or net-of-fees.

2) Real Estate Closed-End fund composites: net-of-fees SI-IRR ONLY.

3) Private Equity: BOTH gross-of-fees and net-of-fees SI-IRR.

Analti_Calte

deriv108 Wrote:
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> 1) under general GIPS provision(maybe including
> RE): composite returns for each year, identified
> as EITHER gross-of-fees or net-of-fees.
>
> 2) Real Estate Closed-End fund composites:
> net-of-fees SI-IRR ONLY.
>
> 3) Private Equity: BOTH gross-of-fees and
> net-of-fees SI-IRR.

This.

jmh530

cfalover Wrote:
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> someone take the 2nd sample and get back to me. I
> could have sworn it said that NET is a
> requirement.

deriv108 summerized it perfectly.

mar350

My reading is the point is not so much about whether you must use Gross or Net, but that whichever is used is disclosed, and if you are presented with net, ensure that the relevant fees are disclosed as well.