History of GIPS

Responding to a Need

In the past, investors had great difficulty obtaining meaningful comparisons of accurate investment performance data. Making apples-to-apples comparisons of investment performance was problematic, and the existence of region-specific guidelines for performance presentation further complicated matters.

This need for a practitioner-driven set of ethical principles and a standardized, industry-wide approach to calculating and reporting investment results led the Association for Investment Management and Research (AIMR®, now known as CFA Institute) to sponsor, develop, and publish a minimum global standard by which firms could calculate and present their investment results.

The foundation for the GIPS standards was first established in 1987, with the creation of the AIMR Performance Presentation Standards (AIMR-PPS®), voluntary performance guidelines for the North American investment management industry. Read the 20th anniversary FAJ article (PDF) and “A Novel Concept” (PDF), a CFA Institute Magazine article.

Moving Globally

Although the AIMR-PPS standards were extensively accepted in the United States and Canada, there was a clear need for a global solution. To develop one globally accepted set of standards, the GIPS committee began work in 1995. AIMR published the GIPS standards for public comment in February 1998, after circulating several drafts among industry participants to obtain their acceptance of the concepts of the Standards. After an extensive period of public comment, the AIMR Board of Governors formally endorsed the GIPS standards in February 1999.

On 4 February 2005, the CFA Institute Board of Governors approved the revised Global Investment Performance Standards (GIPS), which create a single global standard of investment performance reporting and increase minimum standards worldwide.The GIPS standards replaced the various region-specific performance standards and are widely accepted among the international industry of investment managers.

Since their introduction in 1999, the GIPS standards have gathered momentum with investment management firms worldwide adopting these voluntary, ethical standards for calculating and presenting historical investment performance. Strong partnerships with GIPS sponsors to promote and educate the GIPS standards have greatly contributed to the global reach of the Standards.

Investment Performance Council (IPC) Archive

The Investment Performance Committee (IPC) was the precursor to the GIPS Executive Committee. The purpose of the IPC was to promote the adoption and implementation of a single investment performance presentation standard throughout the world as the common method for calculating and presenting investment performance.

Learn more about the IPC and access archived meeting materials