What is one of the fundamentals of GIPS compliance?

The requirement to document all aspects of compliance is a fundamental aspect of Global Investment Performance Standards (GIPS). This documentation is crucial because it provides transparency and allows investors and stakeholders to verify that a firm adheres to the standards. It not only ensures that the information presented is accurate and complete but also reinforces the credibility of the firm’s performance claims.

In the context of GIPS, proper documentation demonstrates a commitment to ethical performance reporting, which ultimately helps foster investor trust. Detailed records can help resolve any discrepancies and provide a clear audit trail for valuation methodologies, composite construction, and any claims related to compliance.

Given this focus on maintaining integrity in performance reporting, the requirement to document all aspects of compliance aligns with the overarching goal of GIPS to create a standard that promotes fair representation and full disclosure of investment performance results to all interested parties.