Global Investment Performance Standards

The 2010 GIPS Standards is the current edition of the GIPS standards

View the standards (PDF)

Overview

The Global Investment Performance Standards (GIPS®) are voluntary and based on the fundamental principles of full disclosure and fair representation of investment performance results. The 2010 edition of the GIPS standards is the latest, most relevant version of the GIPS standards.

Firms must comply with all the requirements of the GIPS standards, including any updates to the GIPS standards themselves, Guidance Statements, interpretations, Questions and Answers (Q&As), and clarifications published by CFA Institute and the GIPS Executive Committee, which are available on this website as well as in the GIPS Handbook.

The GIPS Handbook is the aggregation of the 2010 edition of the GIPS standards, related discussion, Guidance Statements, and selected Q&As into a single volume. The GIPS Handbook is updated more frequently than the GIPS standards to reflect new Guidance Statements and Q&As.

Guidance Statements are written in response to questions that raise new issues beyond the scope of the simple application of the GIPS standards. Guidance Statements include authoritative guidance on a particular topic and may contain additional topic specific requirements and/or recommendations. Firms must comply with all Guidance Statements. Current Guidance Statements are the final and latest version of the Guidance Statement.

GIPS Standards: 2020 Edition

As investor demand drives product innovation, the GIPS standards are evolving to ensure practical, investment industry relevance while maintaining their core purpose: ensuring performance transparency and comparability.

The 2020 GIPS standards represents an important milestone —  in both the evolution of the GIPS standards and in ensuring their relevance for all asset classes and types of investment managers.

Review and comment on the 2020 GIPS Standards Exposure Draft.  The public comment period is open through 31 December 2018.

What is Covered?

The GIPS standards

  • Enable investors to directly compare one firm’s track record with another firm's record.
  • Include composite presentation, improving transparency by eliminating survivorship biases, misrepresentations and historical data omissions.
  • Evolve to address issues that arise in a dynamic investment industry.
  • Incentive firms to invest significant time and resources into internal risk-control mechanisms and setting performance benchmarks — the hallmarks of reliable long-term success. (To claim compliance, an investment firm must demonstrate adherence to comprehensive rules governing input data, calculation methodology, composite construction, disclosures, and presentation and reporting.) 

How Can I Comply?

Compliance with the GIPS standards requires adherence to all applicable requirements of the GIPS standards, including any clarifications, updates, reports, Guidance Statements, questions and answers (Q&As), and the GIPS handbook.

Firms are encouraged to comply with all recommendations within the Standards. The GIPS standards must be applied with the goal of full disclosure and fair representation of investment performance. Meeting that goal will likely require more than compliance with the minimum requirements of the GIPS standards.

For guidance and compliance information, visit gipsstandards.org

Why Was it Developed?

In the past, investors had great difficulty obtaining meaningful comparisons of accurate investment performance data. Making apples-to-apples comparisons of investment performance was problematic, and the existence of country-specific guidelines for performance presentation further complicated matters.

The foundation for the GIPS standards was first established in 1987, with the creation of the AIMR Performance Presentation Standards (AIMR-PPS®), voluntary performance guidelines for the North American investment management industry.

Although the AIMR-PPS standards were extensively accepted in the United States and Canada, there was a clear need for a global solution.

On 4 February 2005, the CFA Institute Board of Governors approved the revised Global Investment Performance Standards (GIPS), which create a single global standard of investment performance reporting and increase minimum standards worldwide.The GIPS standards replaced the various country-specific performance standards and are widely accepted among the international industry of investment managers.

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 GIPS standards have greatly contributed to the global reach of the Standards.

We’re using cookies, but you can turn them off in Privacy Settings. If you use the site without changing settings, you are agreeing to our use of cookies. Learn more in our Privacy Policy.