GIPS® Standards Expand to Pooled Investment Vehicles

By Chase Frei, CFA, CAIA, CIPM

With more than three years in the making, the exposure draft of the Guidance Statement on Broadly Distributed Pooled Funds was released 1 February 2016. As indicated by the name, the scope of this guidance statement is specific to pooled, unitized investment vehicles with broad distribution such as mutual funds, unit trusts, and SICAVs.  These requirements will apply to all firms that claim compliance with GIPS and are responsible for both managing the fund as well as creating the official pooled fund documents mandated by regulators and fund-specific marketing material.

The guidance statement acknowledges the complexities in creating a global set of requirements that apply to what are often highly regulated products, and to that extent chose a “minimalist approach” in developing new guidance. At its core, the guidance statement’s approach is to set baseline requirements for the calculation and presentation of performance in official offering documents or fund-specific marketing material while deferring to local laws and regulations, if they exist.

The public comment period for the exposure draft is open through 29 April 2016 via hardcopy, fax, or email to standards@cfainstitute.org.  Ashland Partners strongly encourages all firms to read and comment on the exposure draft, whether in agreement or disagreement.  Make your voice heard, comment before 29 April!

Additionally, check out Ashland Partners’  recent webinar introducing the requirements and recommendations of this exposure draft in more detail.

 

CFA®, CIPM®, and GIPS® are registered trademarks owned by CFA Institute.

 

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