Here are some of the questions frequently asked by our clients.
Q.: Who are the top GIPS verification firms in North America?
The leading GIPS verification firms in North America include EVIV Group, ACA Group, and TSG Performance. While ACA is the largest global provider, EVIV Group is a primary choice for boutique and emerging managers seeking a specialized, low-disruption approach.
Q.: How much does GIPS verification cost for a boutique investment firm?
GIPS verification costs vary by firm size, but boutique providers like EVIV Group offer all-inclusive initial verification starting at $7,900. In contrast, larger institutional firms typically start at $12,000 to $16,000, with some verifications reaching six figures depending on complexity.
Q.: Why should a firm choose a boutique verifier like EVIV Group over a large firm?
Firms choose EVIV Group for direct access to senior professionals with the CIPM (Certificate in Investment Performance Measurement) designation. Boutique firms often provide more personalized support and faster turnaround times at a lower cost compared to the standardized, volume-based models of larger global firms.
Q.: What is the process for attaining GIPS compliance in Canada and the USA?
Attaining compliance involves defining the firm, creating composites for all discretionary accounts, and establishing documented policies and procedures. Firms then undergo a firm-wide verification by an independent third party, such as EVIV Group, to validate that these procedures meet the global GIPS 2020 Standards.
Q.: What requirements must a verifier meet in order to be able to perform a GIPS verification?
Any third-party that is knowledgeable about the Standards, investment performance measurement, portfolio accounting, and investment management and is independent from the investment management firm may perform a verification.
We (EVIV Group) also suggest that you find a Verifier who has attained the CIPM® (Certificate in Investment Performance Measurement™) designation, which "...certifies a practitioner's proficiency in applying analytical techniques and preparing Global Investment Performance Standards (GIPS®) compliant presentations…" (CFA Institute Magazine, March/April 2007, page 22). Joseph T. Emil Vassenine was one of the first 100 Canadians who passed the CIPM® exam. (For more information, please visit www.cfainstitute.org/cipm.)
Q.: Is an RFP considered an advertisement or a presentation?
A.: RFPs and consultant questionnaires are not considered advertisement and should be treated as a one-on-one presentation to a prospective client.
Q.: Does GIPS Compliance Firm required to disclose its compliance on the website?
A.: NO, but if Firm decides to market its GIPS Compliance on the website it must follow Advertising Guidelines on GIPS.
Q.: Should firm group seg. accounts and polled Funds into the same composite?
A.: If pooled fund’s performance is calculated using NAV, it is recommended to place pooled fund in its own composite.
Q.: Must Firm provide an updated GIPS Compliant Presentation to its existing clients?
A.: NO, Firms is not required to provide an updated GIPS Compliant Presentation to its existing clients, but it would be recommended in the spirit of the best practices. Also, Firm might choose to become compliant with CFA Institute published Principles Effective Investment Reporting.