Navigating Global Investment Performance Standards

The evolving marketplace, the industry’s response

The worldwide market for financial services is evolving rapidly. The years ahead will likely look very different than they do today. In particular, the demand for increased transparency and fair representation of investment performance results will continue to be more important than ever. Many investors are actively seeking reliable, credible, and timely investment performance data as a basis to compare investment managers globally.

The Global Investment Performance Standards (GIPS^®) have been designed to promote the fundamental principles of fair representation and full disclosure of performance results. The mission of the GIPS standards is to build a level field of comparison by standardizing the way investment managers calculate and present performance to prospective and continuing clients.

The GIPS standards provide a globally recognized symbol of credibility, integrity, and uniformity of investment performance results as well as act as a global “passport,” allowing firms to enter the global investment management arena. This dynamic set of standards continually evolves to address current trends within the investment industry.

Countries throughout North America, Europe, Africa, and Asia have adopted the GIPS standards, encouraging investment management firms to follow the standards when calculating and reporting their performance results. With GIPS 20/20 underway, the adoption of the GIPS standards will continue to increase, and the application of the GIPS standards will become more widespread—particularly among alternative investments and the pooled funds.

Deloitte can help

Our dedicated team of professionals provides a wide range of services related to GIPS compliance standards, GIPS compliance verification, and other performance measurement related areas.

Global resources, locally directed. Our local resources leverage dedicated GIPS eminence centers throughout North America, Europe, and Asia, helping our clients learn of developing local and international trends and issues. Via the network of member firms of Deloitte Touche Tohmatsu Limited in several countries around the globe, we have access to a deep pool of resources with significant experience in providing investment performance services.

Industry excellence. Nearly 2,000 US partners, managers, and staff provide a spectrum of assurance and advisory, tax, enterprise risk, regulatory, and consulting services to a broad range of investment management companies. Our clients include investment advisers and administrators from every sector of the industry, including investment managers, broker-dealers, banks, insurance companies, mutual funds, investment partnerships, hedge funds, alternative products, and other money managers.

GIPS compliance 20/20: The way forward

Analyzing the Global Investment Performance Standards

Investment management firms are constantly on the lookout for changing trends that create opportunities in the capital markets. But a different kind of change is currently underway: revisions to the Global Investment Performance Standards (GIPS). How will the new proposals impact investment managers?

Understanding the new GIPS®­ 2020 standards

InFocus: A guide to global investment performance standards

The 2020 global investment performance standards (GIPS 2020) were released by the CFA Institute on June 28, 2019, with an effective date of January 1, 2020, replacing the existing GIPS 2010 standards. Investment management (IM) organizations should be aware of key changes, especially in the alternatives and pooled fund space. Compliance will help IM funds compete for new assets, strengthen internal controls and governance processes, and focus on meeting client expectations.