Revised GIPS Standards Take Effect January 1, 2011


The CFA Institute issued a reminder to all investment managers that updated Global Investment Performance Standards (GIPS) will take effect on January 1, 2011. The revised standards include some of the most comprehensive changes since GIPS were introduced in 1999. The significant changes to GIPS include:

  • Fair Value: Where no market value is available, firms must value the asset using a fair value methodology.
  • Risk: Firms must present the standard deviation of the monthly returns of both the composite and the benchmark.
  • Compliance Statement and Verification Status: Firms must disclose whether they have been verified or not, including specified language describing what is and what is not covered by the verification.
Compliance with GIPS is voluntary, though many firms do adhere to the standards. The entire 2010 edition of the GIPS standards is available here.








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