GIPS in the News Archive
News coverage of the Standards from around the world
2010 Highlights
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 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