A new version of the standards which harmonise the way in which the investment performance of fund managers is presented has been launched by CFA Institute in tandem with UK Investment Performance Committee.

The Global Investment Performance Standards outline new requirements for fund managers on risks taken to achieve investment performance and fair value presentation of assets where no market value is available. In addition, the introduction of a compliance statement and verification status requires firms to state whether they have been verified as having met GIPS standards.

UKIPC Chairman Ray Martin said: “The new GIPS standards will make it easier for investors to get the best value from their investment managers.

“Consistency in measuring the investment performance of asset managers on a consistent basis is crucial to helping investors make better manager choices and ultimately ensuring better returns for their members.”

Jonathan Boersma, executive director of the GIPS standards at CFA Institute added: “While compliance is voluntary, investors are increasingly demanding that firms comply.

“Firms that do not report their investment performance according to the GIPS standards are often excluded from competitive bids. By adhering to a universal set of standards investors are better served because firms are required to fully disclose their past performance based on the same criteria. This assists the investor in making fair comparisons when selecting an investment firm.”