What Parties Do GIPS Apply To?
The GIPS apply directly to all firms that manage investment portfolios and that wish to market their previous track record in this practice and gather additional accounts by constructing performance composites. The development of a global standard is crucial to all firms, but particularly to those who may be in direct competition for business with foreign-based managers, to whom the same standards have not always applied. Global standards ensure that competition occurs on an equal footing and that apples-to-apples comparisons can be clearly drawn.
