ACA Services: GIPS® compliance verification

The Global Investment Performance Standards (‘GIPS’) are ethical standards to be used by investment Managers for creating performance presentations that ensure fair representation and full disclosure. Global standardisation of investment performance reporting will allow investors to compare investment managers and will allow managers to compete for new business, especially in foreign markets.

Now in its tenth year, ACA’s Verification Division, ‘ACA Beacon’ specializes in providing investment managers with GIPS® compliance and verification services. The Division provides verification services to over 200 investment managers – ranging from those managing $100m to larger managers with over $400bn AUM.

Services include:

Pre-Verification Services – Extensive consultation with the client to establish or improve a compliant framework for the proper implementation of the GIPS®.

Firm-wide Verification – An all areas verification, performed to independently attest to a firm’s claim of GIPS® compliance. This verification is designed to ensure the firm complies with all standards on a firm-wide basis; therefore, it encompasses all composites and accounts managed by the firm. The goal of this verification is to confirm that the firm has complied with all the composite construction guidelines set forth by the GIPS® and that the firm’s processes and procedures are designed to calculate and present returns in accordance with the GIPS®

Performance Examination – A performance examination can only be performed after or in conjunction with the completion of a firm-wide verification. This audit is a detailed examination of an individual composite and delves deeper into the input data and calculations behind composite returns to verify their accuracy.

Why Verification?