In working with our verification clients, we are often asked our thoughts on best practices for conducting a review of the firm’s GIPS® compliance program. This is the perfect time of year for those who have oversight of the GIPS program to determine if there are any forward-looking changes to make.
The February 2017 edition of Performance Insight covers the similarities of complying with the
rules and requirements of both the SEC and GIPS standards, proposed revisions to the Guidance
Statement on the Use of Supplemental Information, as well many other industry hot topics.
The Global Investment Performance Standards (“GIPS®”) are a set of voluntary, ethical standards developed by CFA Institute in partnership with other organizations worldwide. The creation of the GIPS standards was spurred by a need for prospective investors to be able to make meaningful comparisons of investment performance across multiple managers, for any given strategy. As acceptance of the GIPS standards continues to spread globally, adoption remains especially strong in the United States. Managers that are registered with the U.S.
The most common question we receive from our GIPS verification clients is, “What do other firms do?” As a result of being asked this question many times, we gathered information about the firms we verify in order to provide answers to commonly asked questions that are based on real data versus anecdotal information.
Please join us for an in-depth discussion of performance challenges faced by private fund managers. Regulators and investors continue to focus on investment performance, specifically marketing materials and the accuracy of the data and disclosures used to support the investment returns. Depending on the asset class or vehicle under management, the challenges of private fund managers are unique.
Highlights from the GIPS Executive Committee Meeting
The GIPS Executive Committee is a standing committee of CFA Institute and serves as the effective decision-making authority for the Global Investment Performance standards (GIPS®). The May 2016 edition of Performance Insight covers key points from the open session of the April meeting of the GIPS Executive Committee.
Please join us on May 23rd at K&L Gates NYC office as Mike Caccese, K&L Gates’ Vice Chairman of Practice Management and Practice Area Leader for Financial Services, and Justin Guthrie, ACA Performance Services’ Managing Partner, discuss trends in the industry related to investment performance. Their panel discussion will focus on GIPS® compliance, portability from a GIPS and an SEC perspective, and ways to mitigate regulatory risk.
The SEC’s focus on investment performance continues to make headlines. In recent months, we have seen cases related to the reliance on subadvisers’ performance without proper due diligence, the mixture of hypothetical and actual returns when presenting historical performance, and the improper calculations of net of fees returns, among other things. Andrew M.