For some firms, achieving compliance with the GIPS standards may not be a realistic short-term goal. However, regardless of whether they adhere to the GIPS standards, all investment advisers who advertise performance should establish objective criteria when constructing their performance track record. Consistent processes for calculating and presenting performance results should be developed and policies and procedures that address performance advertising should be established and documented.
Guardian’s Performance Policies & Procedures services include developing written policies and procedures that address:
- The calculation of composite performance results, including specifying the rules that will govern which portfolios are included in each composite and describing the procedures that will be used to build composites.
- The calculation of hypothetical performance, such as model or backtested results.
- Calculation methodologies, sources of input data, and systems utilized.
- The manner and methods in which performance information is presented to the investing public.