Benefits for Prospective Clients and Investors
How Do the GIPS® Standards Help Prospective Clients and Investors, Including Asset Owners Hiring External Managers?
- Demanding compliance with the GIPS standards makes manager searches and RFPs more efficient because it allows only those firms that have designed and implemented policies and procedures to fairly present their past performance to pass the initial screen, a labor-intensive step of the process.
- Standardized GIPS Reports from prospective managers provide comparable and fully disclosed performance information, thereby improving the quality of due diligence and risk management.
- Hiring a GIPS-compliant firm provides greater confidence that the manager will act in a trustworthy, ethical, and professional manner.
- Manager searches and RFPs are more efficient: only those firms that have implemented procedures to fairly present their past performance will pass the initial screening.