Global Investment Performance Standards (GIPS)Introducing GIPS®
Global Investment Performance Standards (GIPS) are a set of ethical standards whereby investment managers are able to present and disclose investment performance in a way that is accepted and acknowledged globally.
The Standards allow investors to compare investment performance using a consistent methodology, on an “apples to apples” basis, thereby enhancing the professionalism of the industry.
This is particularly true in the case of institutional investors, who consider performance as a critical criterion for selecting investment managers. As a result, we see GIPS as an especially important theme in institutional asset management. Today, private investors are also more performance-conscious than ever, and that consciousness with grow, as GIPS implementation advances globally.
Some of the benefits both for investment managers as well as investors include:
- Strengthened internal processes and controls, improved risk management;
- Increased competitiveness resulting from efficient internal policies and procedures;
- Comparability of investment performance with competitors and a key marketing advantage;
- Confidence in compliance with local and international standards and leading practices; and
- Improved perception, transparency and credibility in the investment market.
- Assurance that the performance information is complete and fairly presented;
- Greater degree of confidence in the performance numbers presented by the firms; and
- Comparability of investment performance among firms.
Find out more about how GIPS will affect your business, by clicking on the following links: