What is the full meaning of GIPS?


What does it mean?

GIPS is a set of standards which were created by the CFA Institute to provide a framework for ethical calculation and presentation of investment performance of an investment management firm. Claiming compliance with GIPS is voluntary and essentially based on two key principles- full disclosure & fair representation of the firm’s performance.

What is the advantage of GIPS or claiming compliance to GIPS?

• Global and local industry respect for compliant firms/asset managers.

• It enables the firm to compete for business on equal grounds with firms from countries with more developed standards.

• It allows firms to market their performance record with credibility based on industry-recognized calculation methods.

• It helps to attract prospects.

• It builds prospect/client trust and confidence in the integrity of complaint firm’s performance.

• It allows client, prospects and other stakeholders the best opportunity to fairly evaluate past performance.

• The compliant firms demonstrate a firm-wide commitment to ethical best practices and the employment of strong internal control processes. This list is not exhaustive.

How is this relevant to my investment with you?

If you do not have an Asset Management or Mutual fund account, this does not affect your investment directly. It is only for your information. If you intend to open an Asset Management/Mutual Fund account with us, it helps you check our past performances to determine which composite strategy (group of portfolios) aligns with your investment risk and return objectives. If you already have an Asset Management account, your portfolio will be managed in a strategy composite against the appropriate benchmark as agreed with you in your Investment Policy Statement (IPS).

Is Meristem Group now GIPS compliant?

Claim to GIPS compliance applies to Investment/Fund Management firms and is specific to the firm. Thus, this claim to compliance only covers Meristem Wealth Management Limited as the Investment Management firm/subsidiary in Meristem Securities Limited.

Are there any disadvantages of GIPS or claiming compliance to GIPS?

The disadvantage is in not adhering to GIPS or claiming compliance as many more firms world-wide are investing the time and resources into becoming compliant, thus, making non-compliance a competitive disadvantage.

How does this GIPS affect the fees I pay? Do I have to pay more or less?

No. Our fees and fee types are not changing or increasing. Instead, our reports will now clearly disclose your returns gross of all fees as well as net of fees.

Where can I check your company’s claim to compliance?