The Global Investment Performance Standards (GIPS®) are a set of guidelines created to help firms calculate and report investment performance to their clients. Compliance with the GIPS standards is voluntary but is considered a best practice for firms looking to differentiate themselves and provide transparency to their clients.

One important aspect of GIPS compliance is the distribution of GIPS reports to prospective clients and/or prospective investors in a Limited Distribution Pooled Fund (“prospects”).

As verifiers, some of the most common deficiencies we see relate to the requirements around the distribution of GIPS reports. In fact, it’s at the top of our Common Mistakes list that we provide to all new clients.