Aite Group Examines Global Investment Performance Standards In Its New Report

A new report from Aite Group, LLC examines the Global Investment Performance Standards (GIPS), designed to provide investment management firms with guidance on how to calculate and report their investment performance results. The report outlines significant changes GIPS will undergo

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A new report from Aite Group, LLC examines the Global Investment Performance Standards (GIPS), designed to provide investment management firms with guidance on how to calculate and report their investment performance results. The report outlines significant changes GIPS will undergo in 2010 and 2011, and considers the investment management industry’s view of GIPS based on interviews with industry professionals completed by Aite Group in January and February of 2009.

As investment managers and their firms focus greater attention on the ability to measure and attribute performance within their investments, GIPS provides a standardized way to report a manager’s performance. Now, GIPS is moving to become the de-facto performance reporting standard across institutional and retail investments, and major changes are afoot for GIPS standards. For firms to be GIPS-compliant, investment managers will need to ensure their systems are up to snuff, or invest in upgrades or new systems.

“In light of the investment markets crisis, GIPS is primed to transition from an optional standard to a new, mandatory performance reporting measure,” says Phillip Silitschanu, senior analyst with Aite Group and author of this report. “When this occurs, investment management firms that have not yet chosen to become GIPS-compliant will scramble to adhere to the new regulation. For some, it may be too late to catch up to competitors that already have the necessary systems in place.”

This 28-page Impact Report contains three figures and two tables. Clients of both Aite Group’s Retail Securities & Investments and Institutional Securities & Investments services can download the report by clicking on the icon to the right.

D.C.

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