Wednesday, September 30, 2009

What does GIPS verification mean?

I'm an amateur when it comes to understanding investment performance standards. So I was surprised when a speaker at the CFA Institute's GIPS (global investment performance standards) conference speaker said verification does NOT verify that firm's composite numbers are correct or that firm is compliant. Huh?

As I understand it, verification simply means the firm has the right processes to be compliant and to calculate performance accurately.

If you've got questions about this topic, I suggest you mosey on over to the Investment Performance Guy's blog, which includes a post on "Verification verifies compliance...not!" Blogger David Spaulding, president of The Spaulding Group, Inc., looks like a valuable resource for your GIPS and performance questions. Back in March 2009, I enjoyed writing "Fixed income attribution falls short" about his talk to the Boston Security Analysts Society.

Related posts:
SEC's update to CFA Institute's GIPS conference
A quant's guide to detecting a future "Madoff"
Top 5 tips for investment performance advertising

Susan B. Weiner, CFA
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Copyright 2009 by Susan B. Weiner All rights reserved

1 comment:

  1. Thanks for the plug! We appreciate you keeping these topics on the forefront of thought.


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