Becoming Compliant 

 

GIPS standards are a globally accepted methodology for calculating and presenting investment firms’ performance history that are widely relied upon by investment firms, their clients, and prospective clients for ensuring consistency of investment firm results. 

 

Global passport:

  • Universal, voluntary standards used by investment managers for quantifying and presenting investment performance that ensure fair representation and full disclosure. The GIPS standards make it possible for investment managers around the world to transport their historical investment returns to other countries without having to restate these figures using different calculation and presentation rules.  This creates a level playing field for all firms, promotes comparability and gives current and potential clients more confidence in the integrity of the performance presentations and the general practices of a compliant firm. 

 

  • The presence of local organizations to sponsor the effective implementation and on-going development of the GIPS standards is essential.  Today, 32 GIPS country sponsors (and growing) provide an important link between the GIPS Executive Committee and local markets where investment managers operate and ensure that local interests are taken into account as the GIPS standards are developed. 

 

Benefits:

  • Investors have a greater level of confidence in the integrity of performance presentations, as well as general practices of GIPS compliant firms.  They can more easily compare performance presentations between different strategies and firms across the global. 

 

  • Investment firms choosing to comply with the GIPS standards assure prospective clients that the historical performance they report is both complete and fairly presented.  The GIPS standards represent industry best practices and compliance demonstrates a firm’s commitment to ethical practices.  Firms complying with the GIPS standards benefit from the standardized framework and internal controls that ensure consistent and directly comparable investment information.

 

  • GIPS standards are voluntary, leading to more effective and efficient investment markets.

 

Find out now how to get started