Perfomance Verification

The GIPS Policies and Procedures Manual: A Solid Blueprint

The GIPS Policies and Procedures Manual: A Solid Blueprint

Claiming GIPS compliance can be a game-changer for investment managers. It’s like constructing a solid architectural marvel that stands tall amidst a competitive financial landscape. And the GIPS Policies and Procedures Manual acts as the blueprint for this masterpiece! In this blog post, we’ll explore how the GIPS P&P Manual is a trusty guide, a transparent window, a rulebook of industry best practices, a validation stamp, and a magnet for investors, all rolled into one.

A Trusty Guide: Building on a Solid Blueprint

Think about it – you wouldn’t build a house without a blueprint, right? Similarly, investment managers can’t claim GIPS compliance without the GIPS Policies and Procedures Manual. This manual acts as a trusty guide, providing step-by-step instructions on how to calculate and present investment performance. With its structured framework, investment managers can be confident about the consistency and accuracy in their reporting. Just like an architect lays the foundation, this manual paves the way for a reliable and robust performance reporting structure.

A Transparent Window: Letting the Light In

When you look at a beautiful building with lots of glass windows, you can see right through it. Well, that’s what the GIPS Policies and Procedures Manual does for investment managers. It demands full disclosure of all relevant information, from performance calculation methods to composite definitions and benchmark selections. This transparency is like sunlight flooding into the investment process. Investors can trust what they see, making informed decisions and feeling confident in the manager’s practices.

A Rulebook of Industry Best Practices: Staying in Line

Every field has its rules. The GIPS Policies and Procedures Manual is a rulebook of industry best practices for investment managers. It helps managers construct their performance reporting in line with the global standard. By complying with GIPS, investment managers build trust with their audiences. Just like a skilled architect adheres to building codes, GIPS-compliant managers adhere to the highest industry standard.

A Validation Stamp: Proving Your Credibility

Imagine you’re visiting a famous landmark, and you see a plaque that says it’s been verified by experts. That’s exactly what GIPS compliance does for investment managers. The manual sets out the guidelines for claiming GIPS compliance, and by following them, managers get the stamp of validation. Just like a famous building with a verification plaque attracts tourists, GIPS-compliant managers attract investors looking for credibility and trustworthiness.

A Magnet for Investors: Attracting the Right Crowd

An awe-inspiring architectural marvel draws in visitors, and GIPS compliance does the same for investors. By adhering to the GIPS Policies and Procedures Manual, investment managers signal to prospective clients that they are serious about transparency and ethical conduct. Like a magnetic force, GIPS-compliant managers attract investors who seek reliable partners for their financial journey.

The GIPS Policies and Procedures Manual is an essential toolkit for investment managers looking to claim GIPS compliance. It serves as a trusty guide, a transparent window into the investment process, a rulebook of industry best practices, a validation stamp for credibility, and a magnet for investors. Just as an architect needs a blueprint to construct a solid building, investment managers need this manual to construct a strong foundation for their GIPS-compliant structure. So, embrace the GIPS manual, and get ready to build a reputation as a trustworthy and credible investment manager in the competitive financial landscape.

What’s more, the CFA Institute has just released guidance for creating a compliant GIPS Policies and Procedures Manual, making that process that much more efficient. Don’t hesitate to contact us; we are excited to partner with you as you build!