By Amy Jones, CIPM, Guardian Performance Solutions LLC, and Thusith Mahanama, Assette* Investment Adviser Association Newsletter, 04.2015
The GIPS standards are a set of standardized, industrywide ethical principles that provide investment management firms with guidance on how to calculate and report their investment results to prospective clients. Investment managers voluntarily choose to abide by the GIPS standards—compliance is not mandated by any law or regulation. A decade ago, institutional firms saw claiming GIPS compliance as a differentiator, but now there are so many firms claiming compliance that it has become a disadvantage to not adhere to the GIPS standards.