Things You Need to Know about GIPS Standards
Do you follow GIPS Standards when presenting investment performance? If yes, then you have a chance to get the transparency you need to compare and examine investment managers. The GIPS Standards are the set of standards and industry wide ethical rules. These rules support investment companies on how to compute and present their investment results to their targeted customers. These standards were advanced to convince investment managers to present their performance history. This is done through following a fair and comparable method.
GIPS Standards are also intended to dishearten the selective use of time periods and the temptation managers may have, particularly when searching for new industry opportunities.
These standards can assist in creating both a level playing field wherein managers can contend and an environment where businessmen can underline the governance of their manager selection decisions. On the other hand, GIPS Standards are voluntarily applied at an agency-wide level. The main purpose of this is to recognize the boundaries for recognizing total firm asset. These boundaries are expected to obtain all the discretionary investments of a manager in multiple countries where they operate. They are also required managers to faction the performance histories of multiple clients funds. They do this through grouping them into composites of similar portfolios.
When executing the GIPS Standards, it has two main components - the compliance and verification. Verification must be done by a qualified independent 3rd party who evaluates whether the company has complied with not only all composite construction pre-requisites, but also all GIPS requirements covering the presentation and calculation performance data. Additionally, compliance focuses on ensuring that a fund manager’s methods meet the 6 parts of the GIPS Standards like Presentation, Fundamentals of Compliance, Data Input, Calculation Methodology, Composite Construction, and Reporting.
If you want to consider a change in verifiers or want to become compliant, you have to look for the best company that suits your needs. To end up your worries, don’t hesitate to contact The Spaulding Group. With them, you are certain that the company will provide superb service at a competitive rate. To meet your needs, the company involves in various types of consulting engagements to help companies with data issues. They also offer wide services such as GIPS standards, Non-GIPS verification, training, publishing, conference and a lot more. To deal with this company, you don’t need to spend more time and effort. The best thing that you can do is to contact the authorized personnel. Then, inform them your real concerns. Then, the company will provide an immediate solution to meet your needs.