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 standardized and industry wide ethical principles that support investment companies on how to compute and present their investment results to possible clients. These standards were improved to entice investment managers to present their performance history in both reasonable and comparable way.
GIPS Standards are also designed to discourage the selective use of time periods and the inducement managers may have, especially when looking for new business opportunities. These standards can help in creating both a level playing field wherein managers can compete and an environment where investors can reinforce 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 have all the discretionary investments of a manager. This is applied in various countries in which they operate. They are also required managers to group the performance histories of various client funds into composites of similar portfolios.
When employing the GIPS Standards, it involves two parts. These are the verification and compliance. 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. If you find it hard to pick the right one, worry-free now! The Spaulding Group is here to assist you. With this company, you are certain that you are depending on the right one. They will offer reliable services at cheap rates. To satisfy your needs, the company involves in multiple types of consulting engagement to assist companies with data problems. They also provide comprehensive services like GIPS Standards, training, Non-GIPS verification, conference, publishing and much more. To ask for their assistance, you don’t have to follow any complex step. All you have to do is to contact the in-charged personnel and tell them what you really want. Upon dealing with them, expect that the company will easily answer your needs. So, don’t miss to deal with them and see how they work.
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