The GIPS Standards
What are Global Investment Performance Standards GIPS® ?
The GIPS Standards are a set of standardized, industry-wide ethical principles that provide investment firms with guidance on how to calculate and report their investment results to prospective clients.
The GIPS Standards make it possible for firms to compete across the globe and allow investors to make comparisons.
They promote fair representation and full disclosure of investment managers’ performance figures. Global standardization of performance reporting guidelines enables investors to compare firms on a global level and allows investment managers to compete in foreign markets.
The GIPS Standards were based on (and preceded in North America by) the AIMR-PPS standards. They came to a broad acceptance in Europe as well as in North America in the late 1990s, especially with respect to institutional clients.
GIPS are also flexible and can be adapted to a firm’s specific situation.