Global Investment Performance Standards 

Since their launch in 1999, the Global Investment Performance Standards (GIPS) has been adopted in over 30 countries, making it one of the most widely recognized voluntary standards in the industry. Adoption is widespread across investment managers operating in the institutional client space. GIPS requires presentation of standardized statistics which have been calculated for standard periods using prescribed methodologies and including relevant disclosures to ensure the highest level of comparability possible for clients looking to choose between different managers.

Relevance for you

For investment managers seeking to attract new clients, the presentation of historic performance has always been a priority to demonstrate capabilities and success achieved over a period of time.

In the past, such information has been provided on a selective basis but the introduction of GIPS created a framework which requires presentation of a combined track record of all accounts managed to each strategy.

GIPS has primarily been adopted by traditional investment managers with a large institutional client base. However, it has recently been growing in relevance to managers of alternative asset classes as well.

Adoption of GIPS for Investment Managers

GIPS has some core requirements:

  • Firm-wide compliance: GIPS requires that a firm be compliant for all of the business covered by the firm definition. It cannot be applied selectively to individual funds or products.
  • Composite reporting: Firms are required to create composites based upon all discretionary investment portfolios which share a common investment strategy and management process.
  • Performance calculation: standardized methodologies are required
  • Reporting period: Firms must present a minimum of five years performance track record in accordance with GIPS to be able to claim compliance, or since inception if that is a shorter period.
  • Full disclosure: Each firm is required to disclose exactly how the standards have been applied to their track record.
  • Verification: This is an optional process of review by an independent third party of a firm's claim of compliance with GIPS. Being verified adds credibility to a claim of compliance and is effectively a requirement for managers seeking appointment in relation to many institutional client portfolios.

How KPMG can help you

KPMG's network of firms has been providing services in relation to GIPS since the launch of the standards. We have developed a complete range of services to support Investment Managers in their goal of establishing and maintaining compliance with GIPS and we now have clients in nearly 30 countries around the world.

We can provide support across a range of activities relating to GIPS compliance:

  • Initial implementation: For a firm seeking to come into compliance with GIPS for the first time we can assists the firm in making the key decisions and setting up required processes.
  • Verification: Once a firm feels ready to claim compliance we can provide verification services which, upon completion, result in a verification report which can be referred to in discussions with prospective clients and can be provided to such potential clients upon request. After an initial verification this process is normally updated annually, although we can provide more, or less, frequent updates where appropriate to meet the specific business needs of the firm.

Making contact

KPMG has an existing network of professionals delivering GIPS related services in many locations around the world and where necessary these offices can also support projects in new locations. If your country is shown in the adjacent list then you can address your questions directly. Otherwise if you contact KPMG in the UK's London office we will make an introduction to the appropriate office.

David Yim

Partner, KPMG in the UK
UK (London)

Steve Campbell

Associate Director, KPMG in Australia
Australia (Sydney)

Jack Ng

Partner, KPMG in Hong Kong
Hong Kong

Seiji Kamiya

Partner, KPMG in Japan
Japan (Tokyo)

Nicolas Olea

Partner, KPMG in Mexico
Mexico (Mexico City)

Peter Withey

Associate Director, KPMG in South Africa
South Africa (Cape Town)

Yvan Mermod

Partner, KPMG in Switzerland
Switzerland (Geneva)

Dan Strasshofer

Partner, KPMG in the US
USA (Boston)