GIPS Asset Owner Guidance Statement is being revised!

The GIPS® Asset Owner Guidance Statement is being revised. A draft was distributed a few weeks ago, and firms have until October 29 (or, if you prefer, 29 October) to respond with their thoughts.

We decided to host a webinar on the topic, but rather than just talk about what’s in the draft, we wanted you to hear from both asset owners and practitioners.

Who or what qualifies as a GIPS Asset Owner?

The guidance does not apply to individuals, but does apply to:

• pension funds (public and private)
• foundations
• endowments
• family offices
• sovereign wealth funds
• etc.

Why would anyone want to comply with the GIPS Asset Owner Guidance?

Good question! I found a document on the Web that Odrée Ducharme, CFA and Jenny Tsouvalis prepared for the CIPC (Canadian Investment Performance Council) that provides very good answers to this question:

“Adherence to GIPS is a voluntary commitment that demonstrates to relevant parties a number of assurances related to performance calculation, valuation and presentation practices, based on the principles of fair representation and full disclosure. The establishment of industry standards helps to create meaningful, comparable performance results between Asset Owners. Further, the adoption of such standards demonstrates a commitment to an asset owner’s fiduciary obligations.

“Most important is the creation of in‐depth policies and procedures governing quality control, error correction, valuation principles, performance methodologies and calculations, and reporting. For Asset Owners undergoing verification, there is the added benefit of a third party review of such policies and procedures.”

Why you should participate in this webinar!

Ashley Reeves, CIPM will begin the webinar with a review of the proposed changes. Knowing what’s being suggested is definitely worth your attention. Further, you’ll hear from practitioners (from both asset owners and custodians) who will let you know their thoughts.

As with all GIPS guidance statements, we are given the opportunity to “chime in” with our thoughts. If you support what’s being suggested, let them know! If you don’t, let them know that, too!

But, I don’t work for an asset owner!

Even if you don’t work for an asset owner, you should take the time to join in. The webinar is FREE! It will last around an hour.

When is the GIPS for Asset Owner webinar and how do I sign up?

The webinar is next Monday, October 10 (10 October) at 11:00 AM US EST.

Registration is free! Sign up by going here.