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New global investment performance standards unveiled

17 February 2010

A new version of the standards which harmonise the way in which the investment performance of fund managers is presented has been launched today by CFA Institute in tandem with UK Investment Performance Committee (UKIPC). 

The Global Investment Performance Standards (GIPS) outline new requirements for fund managers on risks taken to achieve investment performance and fair value presentation of assets where no market value is available.  In addition, the introduction of a compliance statement and verification status requires firms to state whether they have been verified as having met GIPS standards.

UKIPC Chairman Ray Martin said:

“The new GIPS standards will make it easier for investors to get the best value from their investment managers.

“Consistency in measuring the investment performance of asset managers on a consistent basis is crucial to helping investors make better manager choices and ultimately ensuring better returns for their members.”

Jonathan Boersma Executive Director of the GIPS standards at CFA Institute added:

“While compliance is voluntary, investors are increasingly demanding that firms comply.

“Firms that do not report their investment performance according to the GIPS standards are often excluded from competitive bids. By adhering to a universal set of standards investors are better served because firms are required to fully disclose their past performance based on the same criteria. This assists the investor in making fair comparisons when selecting an investment firm.”

The revisions to the GIPS standards, will come into force on 1 January 2011, and are an update to the 2005 version. The new standards can be found at http://www.cfapubs.org/toc/ccb/2010/2010/5 .

Notes to Editors

The UK Investment Performance Committee (UKIPC) is sponsored by the National Association of Pension Funds (NAPF), the Association of British Insurers (ABI) and the Investment Management Association (IMA). The Committee’s membership is widely drawn and includes the Association of Consulting Actuaries, the Association of Private Client Investment Managers and Stockbrokers, the British Venture Capital Association, CFA UK, the Society of Pension Consultants, the Investment Property Forum, Software Suppliers, Investment Performance  easurers and GIPS Verifiers.

To maintain global relevance the GIPS standards must be regularly updated through adding new provisions, removing out dated ones and extending its coverage to new asset classes.

Journalists requiring further information, please contact:

NAPF - Please contact the NAPF press office on 020 7601 1717

ABI - Erfan Hussain 020 7216 7411 [email protected]

IMA - Noreen Shah 020 7831 0898 [email protected]

CFA Institute - Sarah-Jane Purvis 020 7531 0766 [email protected]

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