The Spaulding Group declared 2018 “the Year of the Asset Owner,” as a way to provide further attention to this critically important segment of the investment industry.
The Global Investment Performance Standards (GIPS®) announced several years ago that asset owners can now claim compliance, but until recently we hadn’t seen much in the way of movement to comply. That is changing, however, as two of the larger U.S. public pension funds (CalPERS and Mass PRIM) have both decided to comply.
As the #2 GIPS verifier, we serve both asset managers and asset owners. This page provides asset owners with information on GIPS compliance, as well as our other services that can benefit asset owners.
- GIPS for Asset Owners White Paper
- CFA Institute’s Guidance Statement
- Verification Process for Asset Owners
- CalPERS adopts Global Investment Performance Standards
- GIPS For Asset Owners: Why Adopt a Voluntary Standard? Webinar
- Robert Paterson, CIPM, FRM, CalPERS
- Ashley Reeves, CIPM, The Spaulding Group
Why Should Asset Owners Comply?
Historically, the GIPS standards were silent on asset owners, and the guidance wasn’t a great fit. CFA Institute, with input from the industry, issued guidance specifically for asset owners. This guidance included considerations to make the GIPS standards a better fit for asset owners, such as the acknowledgment that many asset owners do not have prospective clients because they do not compete for business. And, hopefully, guidance that would make it easier for asset owners to comply, such as the one-year minimum compliance requirement, rather than the five years required of asset managers.
Now that there is guidance specific for asset owners, there are several reasons why asset owners should comply with the GIPS standards.
- The GIPS standards are a set of ethical principles that have been widely accepted by asset managers across the globe.
- Compliance with the GIPS standards demonstrates that the organization is committed to an external set of global industry standards and best practices.
- Provides stakeholders with greater confidence in what is being reported.
- Establishes robust policies and procedures within the organization.
- Ensures the use of consistent, transparent, and comparable methods for calculating and presenting performance.
- Demonstrates that the asset owner is willing to follow the same standards used by, and typically required of, external asset managers.