CFA Institute Calls for Universal Comparison of Investment Performance Data at the GIPS Standards Conference

CFA Institute, the global association of investment professionals, today challenged investment professionals worldwide at its 19th Annual GIPS Standards Conference to comply with the highest performance measurement standards in the asset management industry.  In his address to attendees, president and CEO of CFA Institute, Paul Smith, CFA, urged the industry to universally adhere to the GIPS standards to create an even playing field and give current and prospective investors more confidence in the integrity of their calculating and reporting of investment results.

"Given the clear benefits and the fact that the GIPS standards are the only globally accepted best practices for performance, there should be universal compliance in the industry,” said Smith. “Investment professionals exist to satisfy the needs of their clients, and they need standards like GIPS to boost investors’ confidence and help their clients make better investment decisions. Our markets need investors who demand the highest standards of competence and trustworthiness of investment professionals, and compliance with GIPS standards is an essential component of that.”

The Global Investment Performance Standards (GIPS) is a set of standardized, industry-wide ethical principles that guide investment firms on how to calculate and present their investment results to prospective clients. Thirty-seven countries have adopted the Standards and they are recognized around the world for their unparalleled credibility, integrity, scope and uniformity, enabling investors to directly compare a firm’s track record with other firms. Since their introduction in 1999, the GIPS standards have gathered momentum with investment management firms worldwide adopting these voluntary, ethical standards for calculating and presenting historical investment performance. Strong partnerships with country sponsors to promote and educate the industry have greatly contributed to the Standards’ global reach. A list of firms claiming compliance with the GIPS standards is available at www.gipsstandards.org.

“More investment firms need to publically attest to the highest standards of professional conduct, and industry-wide acceptance of GIPS Standards is a logical first step,” said Jonathan Boersma, CFA, head, Professional Standards at CFA Institute. “Not only will this create more transparent and fair investment performance reporting to prospective clients, but also help improve the integrity of the financial industry.

The GIPS Standards Annual Conference is the only conference of its kind, focused on the implementation and application of the Global Investment Performance (GIPS) standards. Experts share best practices and speak to the key issues and major developments in the performance measurement field, making this conference essential for any performance or compliance professional. The conference runs Sept. 17 and 18 in San Diego. For a detailed conference agenda, please view here.