GIPS in the News Archive
News coverage of the Standards from around the world
2011 Highlights
Revisions to the GIPS guidance statement on performance
examinations (PDF)
E&Y Newsletter / August 2011
Excerpt: The Exposure Draft of the Guidance
on Performance Examinations includes a significant number of changes:
expanded, sometimes more stringent, procedures, clarification of
execution and reporting requirements and consistency with the GIPS 2010
standards.
GIPS strategic plan 2015: An interview with Jonathan
Boersma (PDF)
E&Y Newsletter / August 2011
Excerpt: The GIPS standards fit very nicely
into the toolbox that the asset manager is using to rebuild integrity and
investor trust.
Hedge fund managers' processes are maturing: GIPS now address issues specific to hedge fund managers (PDF)
E&Y Newsletter / August 2011
Excerpt: Today, most investors expect firms
to be "GIPS compliant" and rely on performance reports that are
both accurate and verified. In this context, it is important to consider
certain strategic aspects as to why the GIPS standards are
increasingly important to hedge fund and alternative investment firms and
their investors.
Financial Times / 5 June 2011
Excerpt: “You need to know what to ask,” says
Charlotte Beyer, chief executive of the IPI. “You have to ask for data in
the way that the Standards call for, ask how many accounts they have, how
much they’ve had in flows in and out, and ask about their performance
attribution."
Here's one way to beat the market
The Wall Street Journal / 4 June 2011
Excerpt: When mutual funds compare their return
to that of a stock index, they are required by the Securities and
Exchange Commission to include dividend income in the performance of the
index. Money managers abiding by voluntary guidelines known as the Global
Investment Performance Standards must do the same.
A strategy for an ethical standard (PDF)
Julian Le Fanu for NAPF News / Spring 2011
Excerpt: UK institutional investors have
played a leading role in the development of the Global Investment
Performance Standards (GIPS) - not surprisingly given the importance of
the financial sector in the economy.
Portfolio Institutional / 30 March 2011
Excerpt: There has been much talk in recent
times about the need for the financial sector to get back to basics.
Several causes may have combined to trigger the 2008 crisis, but the
bewildering complexity of many products and services is widely agreed to
have helped foster what was essentially a dysfunctional marketplace.
GIPS 2010: What every firm needs to know now (and how to react)
Investment Lawyer / March 2011
Excerpt: On January 1, 2011, CFA
Institute's 2010 revisions to the Global Investment Performance Standards
(GIPS) went into effect.
Implementing GIPS 2010 (PDF)
Sunette Mulder, Senior Policy Advisor with the Association for Savings
and Investment South Africa (ASISA) / 9 February 2011
Excerpt: The Global Investment Performance
Standards (GIPS) are a set of voluntary ethical Standards that can be
adopted by asset managers globally. These self-regulatory Standards
present principles that aim to achieve full disclosure and fair
representation of historical investment performance to prospective
clients. Some of the main objectives aim to ensure that accurate and
consistent data is used in the calculation and presentation of investment
performance and to promote fair global competition between investment
firms.
GIPS Standards and Key Questions (PDF)
Carl de Wet, RMB Asset Management (PTY) Ltd., Susanne Klemm, Ernst
&Young Ltd. / 2 February 2011
Excerpt: This article emphasizes the benefits of
the Standards and addresses several key questions about GIPS often
voiced by the investment community.
2010 Highlights
GIPS: A passport to credibility for fund performance (PDF)
The Hedge Fund Journal / October 2010
Excerpt: Post-Madoff era sees investors
focusing more on GIPS than ever
All about verifying compliance
Asia Asset Management / September 2010
Excerpt: As the fund management and pension fund
industries prepare for the implementation of the revised 2010 Global
Investment Performance Standards (GIPS), which are due to come into
effect on January 1, 2011, Asia Asset Management examines the
issues behind compliance of the standards worldwide, especially in
Asia.
The winding road to GIPS 2010 and continued development of the GIPS standards (PDF)
22 September 2010
Excerpt: An interview with Mr. Colin Morrison,
GIPS Executive Committee, Investor/Consultant Subcommittee Chair and
Founder, Paradigm Investment Consulting Limited by Matt Price, Partner,
Ernst & Young, UK
The Global Investment Performance Standards
(GIPS) get a facelift (PDF)
Susanne Klemm, Eugene Skrynnyk, Ernst & Young / August 2010
Excerpt: The GIPS standards were the first
non-legislative or regulatory move to give a concrete framework for
calculating and presenting historical investment performance information.
As 2010 unwinds, the growing importance of the GIPS standards in the
global economy is not waning.
Revised GIPS standards focus on pricing and risk
management
Buy-Side Technology / 1 March 2010
Excerpt: The CFA Institute, the
Virginia-based investment industry group, has rolled out a new version
of its Global Investment Performance Standards (GIPS) emphasizing
stronger valuation and risk management practices.
Reasons to be Cheerful about GIPS Standards
Financial Times / 28 February 2010
Excerpt: The recently released Global
Investment Performance Standards outline new criteria for presenting
investment performance to potential investors. Jonathan Boersma discusses
these standards and why an investment firm would want to implement them.
New GIPS launched
Excerpt: NAPF PolicyWatch / 26 February
2010
After more than a year in preparation the latest and most comprehensive
version of GIPS has just been released and can be found here. Called GIPS 2010 its provisions become effective on 1
January 2011. The revised version reflects the joint co-operation with
the CFA Institute and country sponsors in over 32 countries. The NAPF as
joint sponsor of UKIPC (along with the ABI and IMA) has contributed
extensively to the update.
As members will know compliance with the GIPS standards improves
investor confidence because they know that the performance information is
fairly presented and fully disclosed. By adhering to a universal set of
standards that apply to investment management firms worldwide, investors
are better served because firms are required to fully disclose their past
performance based on the same criteria. This assists pension schemes and
other investors in making fair-comparison when selecting an investment
firm.
The revised standards contain a great number of technical amendments as well as significant changes including Fair Value, Risk and Compliance. Of particular interest to pension schemes is the introduction of a Compliance Statement and Verification Status. The revised GIPS standards will require firms to disclose their verification status together with a description describing what is and what is not covered by verification. The NAPF continues to strongly support independent third party verification believing in the important reassurance that verification offers to investors.
GIPS Given Extensive Revamp
Investment Advisor / 24 February 2010
Excerpt: The CFA Institute has published what
it has called the “most comprehensive” set of standards for investment
firms. These include the fair valuation of assets when no market value
is available and the disclosure of standard deviation of the returns of
funds and the benchmarks.
Updated GIPS targets risk and
compliance
I&PE / 18 February 2010
Excerpt: Revisions to the Global
Investment Performance Standards (GIPS) will come into force in January
2011 requiring fund managers to publish a compliance statement on how
they have met the GIPS standards and whether they have been verified.
New Scheme to Standardize Hedge Fund Performance Reporting
Hedge Week / 18 February 2010
Excerpt: New steps have been taken to standardize the way that investment performance of hedge fund managers is presented.
New Global Investment Performance Standards Unveiled
The Hedge Fund Journal / 17 February 2010
Excerpt: A new version of the standards
which harmonize the way in which the investment performance of fund
managers is presented has been launched by CFA Institute in tandem with
UK Investment Performance Committee.
The Global Investment Performance Standards outline new requirements for
fund managers on risks taken to achieve investment performance and fair
value presentation of assets where no market value is available. In
addition, the introduction of a compliance statement and verification
status requires firms to state whether they have been verified as having
met GIPS standards.
UKIPC Chairman Ray Martin said: “The new GIPS standards will make it
easier for investors to get the best value from their investment
managers.
Global Investment Performance Standards Updated
European Pensions / 17 February 2010
Excerpt: The standards by which the investment performance of fund managers is presented have been updated by the CFA Institute and the UK Investment Performance Committee (UKIPC).
The Global Investment Performance Standards (GIPS) detail the new requirements for fund managers on risks taken to achieve investment performance and fair value presentation of assets where no market value is available. The introduction of a compliance statement and verification status requires firms to state whether they have been verified as having met GIPS standards is another feature.
“The new GIPS standards will make it easier for investors to get the best value from their investment managers,” commented Ray Martin, UKIPC chairman. “Consistency in measuring the investment performance of asset managers on a consistent basis is crucial for helping investors make better manager choices and ultimately ensuring better returns for their members.”
New GIPS standards call for fair valuation, better risk reporting
Global Pensions / 17 February 2010
Excerpt: The CFA Institute and the UK Investment Performance Committee (UKIPC) have unveiled new GIPS standards that will require fair value reporting of hard to value assets and more in-depth reporting of risk within an investment strategy.
Revitalizing Asset Management
Business Recorder / 19 January 2010
Excerpt: The industry should move towards promulgating a Code of Ethics, signed by all asset managers, as a pledge to observe highest standards of integrity and fairness in all dealings with investors, issuers, distributors and regulator. Furthermore, adapting the Global Investment Performance Standards (GIPS) to ensure fair representation and full disclosure will help enhance investor confidence in making an informed investment decision.
GIPS compliant firms voluntarily go beyond legal reporting requirements to demonstrate a commitment to openness and ethical practices by eliminating misrepresentations and omissions of historical data. Intermediaries play an important role in providing investors with true, accurate and timely information on the merits of funds they market.
2009 Highlights
The Glass Hammer / Stone House Consulting Survey of Buy-Side Industry Trends (PDF)
Stone House Consulting / 27 October 2009
Excerpt: Have decreased revenues and increased expenditure further aligned hedge fund managers with traditional managers and forced them to think more about running their business as well as their assets? Will hedge fund managers embrace the GIPS standards? Holly Miller, partner at Stone House Consulting, LLC and member of the GIPS Promotion & Awareness Subcommittee, provides insight.
Setting New Standards
New Zealand Sunday Star Times / 18 October 2009
Excerpt: Investment managers for Kiwisaver, New Zealand’s voluntary long-term savings scheme, are urged to adopt the GIPS standards to benefit the savings industry, investment managers, and investors in New Zealand by providing reliable, robust, and comparable returns’ presentation.
Real Estate Rama / 5 August 2009
Excerpt: The Appraisal Institute, the nation’s largest real estate appraisal organization, today announced its support for revisions to the Global Investment Performance Standards. The Institute expressed particular support for a proposal to increase the frequency that real estate investments are appraised by an external party at least once every 36 months.
2008 Highlights
Investment Performance Reporting: From Obligation to Differentiator
HedgeWorld News / 11 September 2008
Excerpt: Given the current economic environment, the investment management industry is facing increased scrutiny from all its stakeholders. One of this sector's pressing needs is adoption of the right processes, procedures and controls to ensure that reported and marketed performance figures are represented accurately and in a timely fashion.
GIPS (Global Investment Performance Standards) is a set of protocols established in 1999 by the CFA Institute and adopted by firms in more than 25 countries. These standards govern the presentation of investment performance results by asset management firms. From a risk perspective, they provide a roadmap that enables potential investors to evaluate comparable performance results based on fair representation and full disclosure.
Fund Management: Tool That Helps to Benchmark Funds
Financial Times / 11 February 2008
Excerpt: GIPS, a product of self-regulation rather than externally imposed standards, are employed by the majority of large fund managers in developed economies. They demand that managers provide a standardized presentation of fund performance so they can be compared with rival offerings.
Advisors Urged to Adopt More Stringent Reporting
Methods in Line with Mifid
Citywire / 9 January 2008
Excerpt:
'GIPS is a level of reporting standard that many of the
ultra-high-net-worth clients opt for when choosing a reporting method,
and therefore wealth manager. Given that these individuals are the jewels
of a relationship manager's client base, it makes financial sense for
institutions to ensure client reporting is as sophisticated as the
products it covers,' he said.
2007 Highlights
Journal of Performance Measurement Interview with GIPS Executive Director Jonathan Boersma, CFA
The Journal of Performance Measurement / Fall 2007
Jonathan Boersma, CFA is director, investment performance standards, at the CFA Institute Centre for Financial Market Integrity. He is responsible for managing the Investment Performance Standards Policy Group; promulgating the Global Investment Performance Standards (GIPS®) positions, policies, and standards; and coordinating and supporting related educational and public awareness activities.
SEC Alert Sparks Review Of GIPS Compliance
FundFire / 12 September 2007
Excerpt: “I think it’s great to bring attention to this issue,” says Jonathan Boersma, executive director of GIPS at the CFA Institute Centre for Financial Market Integrity. Although voluntary, adherence to GIPS has become a de facto requirement for institutional managers looking to assert the credibility of their performance statements. CFA Institute released a revised set of standards in early 2005, which went into effect at the start of 2006. The September-October edition of the institute’s CFA Magazine explores the details of the SEC alert and outlines several steps firms might take to shore up their GIPS compliance.
Lifting The Lid
Reuters / 8 September 2007
Excerpt: “I think investors want to see a fair representation of what it is that they own and how those assets and liabilities are performing,” said Jonathan Boersma, director of investment performance standards at the CFA Centre for Financial Market Integrity, which represents financial analysts and portfolio managers. “As more of these kind of vehicles come to light ... I think there are going to be a lot of investors scratching their heads, saying they didn't know the extent of the exposure here.”
Interview With Mohammad Shoaib, CFA, President of
CFA Association of Pakistan
CNBC Pakistan / 11 July 2007
Excerpt: [translation]
Mohammad Shoaib introduced the GIPS standards and how its adoption in
Pakistan can facilitate investors’ comparison of portfolio and fund
managers with them using a uniform set of global standards in investment
performance calculations and reporting. He also mentioned the visit of
Mr. Louis Boulanger, CFA, earlier this year who traveled to Pakistan from
his home country, New Zealand, to hold a series of interactive workshops
to create awareness about GIPS among the investors, fund managers, and
regulators. Shoaib also talked about the discussions being held with the
key regulator in Pakistan, SECP, to implement GIPS in Pakistan.
Meeting Global Standards
Forbes.com / 15 May 2007
Excerpt: Being GIPS-compliant can actually make things easier for firms that are trying to compete in multiple markets, because they have to abide by only one set of standards and they can avoid having to make major changes in their presentation or calculation methods when working in other countries. In other words, GIPS fills a need for standardization across a far-flung industry.
Niche Manager Scores Performance Reporting
First
Financial Alert (New Zealand) / 8 May 2007
Excerpt: "GIPS help to facilitate a dialogue between investment managers and their prospective clients about the critical issues as to how an investment management firm has achieved performance results that can help determine future investment strategies," IFSA chief executive Richard Gilbert told Money Management.
CFA Appoints Ethics Czar
Investment News Daily / 19 March 2007
Excerpt: The CFA Institute Centre for Financial
Market Integrity has appointed Jonathan A. Boersma executive director
overseeing the global investment performance standards, or GIPS, in a
statement released today. Mr. Boersma will serve as a permanent member of
the GIPS executive committee and manager for the GIPS secretariat at CFA
Institute in Charlottesville, Va. GIPS are a set of ethical principals
that establish a standardized, industry-wide approach to how investment
firms should calculate and report their investment results to prospective
clients. Prior to obtaining his new post, Mr. Boersma was director of
standards of practice at the CFA Centre where he directed the
development, circulation, and maintenance