CAPS 4.0 is a software suite developed as an information system to help investment managers build, manage and report composites in compliance with GIPS®. The CAPS development team follows closely any changes in GIPS® and builds these into the software. All CAPS 4.0 clients are kept up-to-date on the latest changes to GIPS® - including Guidance Statements and other areas that may affect their performance. Responsibility for meeting the standards remains with the portfolio manager, but CAPS can make this process easier.
Usually one or two people within a firm have access to the CAPS Loader and CAPS 4.0 software for importing portfolio performance and managing composites, but several users can access the read-only CAPS Reports software.
CAPS 4.0 tracks all portfolios under management. It does this by storing portfolio data in a database on a month-by-month basis. The database stores monthly performance and market values for each portfolio based on information from the accounting/performance measurement system.*
CAPS 4.0 allows the user to setup composites and identify specific policies for portfolios to be included in a composite. Specific requirements can include:
- Portfolio characteristic properties (e.g. Manager=Bob Smith, Fee=Yes, Tax=Exempt and Style=Large Cap).
- Portfolio market value size.
- Target asset class investment levels (e.g. 80 - 100% Equity; < 20% Cash).
- Significant cash flows (e.g. exclude if cash flow>20%)
- Tracking fields (e.g. exclude if <40 equity holdings).
The software can also provide warnings to the user if any of these policies are breached.
Information-tracking sets the CAPS 4.0 system apart from other composite software programs. Tracking this information on a monthly basis keeps the user on top of changes to a portfolio that can influence its representation within a composite or composites.
Beyond tracking information, the system allows the user to make changes or adjustments to composites. When a change is made, audit trails are automatically created and time-stamped for faster verification. GIPS® compliance and verification can be confirmed with less work and sooner with reports that have been created to pull all the information together for a composite. The user can create very detailed performance reports and gain insight into how portfolios are being managed and why performance may be skewed in certain periods or for certain clients.
*CAPS 4.0 does not calculate portfolio returns.
To view a PowerPoint Presentation of CAPS 4.0, see the CAPS 4.0 Presentation