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.
All asset owners encounter performance challenges related to calculating performance returns, valuing illiquid investments, preparing performance results, and reporting returns to a board of directors, among others. In their search for a consistent, industry standard for preparing and reporting performance results, some asset owners are also considering compliance with the GIPS standards.
June 30th is quickly approaching. Any firm claiming GIPS compliance that has not notified CFA Institute of their claim of compliance by that date will not, in fact, be GIPS compliant. The form can be found here and, as a reminder, captures the following required information.