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CFA Institute Global Investment Performance Standards Cited by President’s Working Group on Financial Markets
Charlottesville, Va., April 21,
2008 − The President’s Working Group on Financial Markets
Investor’s Committee recommends in its report Principles and Best Practices for Hedge Fund
Investors that investors require hedge fund and hedge fund of fund
managers to comply with the Global Investment Performance Standards
(GIPS®).
The Investor’s Committee was chaired by Russell Read, CIO of the
California Public Employees’ Retirement System. Mr. Read stated, “Not
only are we trying to provide the very best practices recommendations,
our goal is to have those practices be accepted by both investors and
hedge fund managers and perhaps most importantly, to have those
recommendations become common practice throughout the industry.”
The report states, “When practical and applicable, investors should
require that hedge fund managers report their performance according to
GIPS reporting standards.”
“We are pleased to see the GIPS standards recognized in the report as
best practice,” noted Jonathan Boersma, CFA, executive director of the
GIPS standards at CFA Institute. “Compliance with the GIPS standards
indicate a commitment to integrity and ethical practice and is critical
to meeting investor’s needs and building trust.”
“We hope to see hedge funds and hedge fund of funds implement the
recommendations in the report,” Boersma added. “Compliance with the GIPS
standards, which are recognized globally as best practice for calculating
and presenting investment performance, is a strong step in the right
direction. As investors demand compliance, hedge fund managers will
respond in order to remain competitive.”
View the complete report.