Introduction - GIPS

When investment firms follow global standards for reporting investment performance, it gives investors the transparency they need to compare and evaluate investment managers. The Global Investment Performance Standards (GIPS) is a set of standardized, industry-wide ethical principles that guide investment firms on how to calculate and report their investment results to prospective clients.

In this document, we cover two reading on Global Investment Performance Standards (GIPS) which are a part of the CFA Level I curriculum.

Reading 4: Introduction to Global Investment Performance Standards (GIPS)

In this reading we explain why the GIPS standards were created, who can claim compliance, and who benefits from the compliance. It also covers the construction and purpose of composites in performance reporting. Finally we explain the requirements for verification.

Reading 5: Global Investment performance Standards

This reading covers the Preface, Section I, and Section II of the GIPS Document.

Students are advised to download the GIPS Handbook from the CFA Institute Website, available at the following link.

https://www.cfainstitute.org/en/ethics-standards/codes/gips-standards