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What are the GIPS® Standards? The Global Investment Performance Standards (GIPS) are an ethical set of standardized, industry-wide principles that provide investment firms with guidance on how they report their investment performance to prospective clients. The Standards allow firms to compete globally and provide investors the ability to make comparisons between investment firms.
What is GIPS Verification? GIPS verification is an independent third party review of an investment management firm's performance processes and procedures. During this review the verifier will:
- Review and test the investment manager's GIPS policies and procedures.
- Review composite presentations to ensure that all of the required data and disclosures are presented. This will also help to identify areas to address in more detail.
- Review annual returns and composite statistics on GIPS presentations.
- Check calculations.
Items the verifier will want to see include:
- A list of open and closed accounts for the period under review.
- Composite membership reports.
- A list of accounts that are excluded from composites and the reason(s) why.
- ADV Parts I and II.
- Other items depending on what is found during the review.
Why should my firm become GIPS compliant and verified? At one time, firms had an advantage by complying with the standards; today it's a disadvantage not to comply. Compliance is a de facto requirement in the institutional marketplace. The same can be said of verifications: our research shows that most compliant firms have them done. In addition to responding to a marketing need, verification should provide a firm claiming compliance with added confidence that they are, in fact, compliant.
In addition, other areas of the industry such as hedge funds, private equity, and real estate are showing increased interest in GIPS compliance.
The Spaulding Group is the industry leader in investment performance measurement products and services. We take your firm's claim of compliance and GIPS verification very seriously, and we do not offer "rubber stamp" verifications.
Our clients deal only with experienced, senior-level professionals. Our verifiers were chosen to conduct training for the CFA Institute on the GIPS Standards and are heavily involved with the standards. We are available for our clients year-round to answer questions and provide support and if you want to become compliant, we can help you move toward compliance with confidence.
Our verifiers average more than 20 years industry experience, and have worked with all types of managers. We have clients throughout the United States, Canada, Europe, and the Middle East, with assets under management ranging from less than $100 million to more than $500 billion.
With The Spaulding Group you get
- Senior level professionals conducting your GIPS verification.
- GIPS verifications that are conducted on-site.
- GIPS verifications that are done by people, not computers.
- Increased confidence that your firm is truly compliant, not "rubber stamped".
- A firm that has been doing verifications since 1992.
- A firm with a global reputation for excellence.
Whether you are considering a change in verifiers, looking to be verified for the first time, or want to become compliant, The Spaulding Group can help. You can be confident that we will provide superior service at a competitive price. For further information and a no obligation quote, please fill out this form and return it to Christopher Spaulding (PH: 732-873-5700; FAX: 732-873-3997);
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Verified, but are you really compliant?
If you are going to make the investment to have your claim of compliance with the Global Investment Performance Standards (GIPS) verified, doesn't it make sense to select a verifier who will do a quality job and provide you with added assurance that you truly are compliant?
Red flags that you may have an unqualified verifier
Every year they bring in new staff to conduct your verification, who are often junior-level, and, you get to train them!
You have to answer the same questions year after year.
You are aware of problems that your verifier does not find.
Your verifier avoids answering your questions or providing guidance.
While it is nice to get their GIPS verification report saying everything is fine, you are concerned that you may not actually be compliant.
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