What is the effect of standards on investment management firms and systems?
New and evolving standards will put pressure on investment management firms to insure that their systems can support the increased complexity of AIMR PPS and GIPS. Increasingly investment firms are turning away from their legacy systems toward new more specialized systems to address their performance needs, often using multiple performance systems for multiple asset classes. There are 21 performance measurement systems now available. Remember, systems are not AIMR compliant but assist firms in becoming compliant. Global standards, complex new asset types, and risk management and attribution advances have put significant demands on these vendors. Several performance systems have come a long way in supporting AIMR requirements. Investment firms need to keep a sharp eye on developments for both performance standards and performance measurement systems.
