Mexico Adopts GIPS Standards to Drive Full Disclosure of Investment Performance and Increased Transparency for Investors

18 July, 2012

Mexico City Mexico

CFA Society Mexico signs as one of the first country sponsors of the Global Investment Performance Standards (GIPS®) in Latin America

Mexico has become one of the first Latin American countries to adopt the Global Investment Performance Standards (GIPS), a set of ethical principles that provide investment firms with guidance on how to calculate and report their investment results to prospective clients. The GIPS standards will give Mexican investors the additional transparency they need to compare and evaluate investment managers through the Standards' global standardization of investment performance calculation and reporting.

CFA Society Mexico has been named as an official country sponsor of the Standards for the Mexican market and the 35th investment organization to join this global partnership. As a GIPS country sponsor, CFA Society Mexico, will drive the advancement of the GIPS standards in the market and promote their use for the ultimate benefit of investors.

“As Mexico’s financial industry continues to grow, the importance of establishing standards of investment performance measurement, and reporting that are reliable and consistent worldwide, becomes crucial,” said Javier Domenech Macias, CFA, president of CFA Society Mexico. “The Standards build a level field of comparison by standardizing the way investment managers calculate and present performance to clients. Pioneering the adoption of the GIPS standards in Latin America reflects our commitment to support the local financial market.”

The GIPS standards were created and are administered by CFA Institute, the global association of investment professionals that sets the standard for professional excellence and awards the Chartered Financial Analyst® (CFA®) and Certificate in Investment Performance Measurement (CIPM) designations. The success of the GIPS standards is the result of an alliance among experts worldwide who contribute to promoting and developing the GIPS standards which evolve periodically in response to investment industry changes.

The GIPS standards benefit two main groups: investment management firms, and their current and potential clients, including the investment consultants who evaluate, supervise, hire, and dismiss investment management firms on behalf of those clients. Investors benefit by receiving consistent and comparable performance presented to them that is built on ethical principles. Investment managers are able to compete fairly when they all play by the same rules. Additionally, by complying with the GIPS standards, asset managers in Mexico will be able to compete on the same level as other firms from around the world. Adherence to the GIPS Standards is voluntary and based on the fundamental principles of full disclosure and fair representation of investment performance.

“Transparency and the promotion of consistent professional practices are key elements in the quest to restoring investor trust around the world,” said Jonathan Boersma, CFA, executive director of the GIPS standards. “We are pleased to have CFA Society Mexico share the important role of promoting the GIPS standards in Mexico and are particularly excited to expand the adoption of the GIPS standards further in Latin America,”

For more information about the GIPS standards, visit www.gipsstandards.org.