KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--CMG Capital Management Group, Inc. is pleased to announce the adoption of Global Investment Performance Standards (“GIPS”) for investment performance calculation and reporting. CMG has chosen Ashland Partners & Company LLP to verify its GIPS policies and procedures.
GIPS is a set of standardized, industry-wide ethical principles that provide investment management firms with guidance on how to calculate and report their investment results. Although the adoption of GIPS is not mandated by regulation, it is considered best practice for investment advisors.
“With all of the discussion regarding fiduciary standards, we believe it is only a matter of time before the GIPS standard is adopted industry-wide,” said CMG President, PJ Grzywacz. “Although many people understand GIPS to be a way to compile performance returns, it is much more than that. GIPS is not just about building performance composites. It is a representation of our commitment to provide transparency and build strong internal controls through our adoption of the policies and procedures that are the core of the GIPS standard.”
Currently, there are 1,405 firms worldwide that claim compliance with GIPS standards, according to the CFA Institute. While all of these firms claim compliance, only a select number of those firms proceed with verification. Firms that claim GIPS compliance adhere to all applicable requirements of the GIPS standards but do so through an ethical commitment to best practices.
Third party verification brings additional credibility to a firm’s claim of compliance and requires robust review of performance composites and thorough testing of policies by the independent party. CMG chose Ashland Partners, an industry leader with eight offices worldwide, for verification because of their long history as a GIPS service provider. Since its founding in 1992, Ashland’s sole focus has been on providing GIPS compliance and verification services to the investment management industry.
“The verification process is very robust. We didn’t want to just implement GIPS policies and procedures – we wanted to be verified by the industry leader, Ashland,” said Andrew Elkin, CMG’s COO and Chair of the firm’s GIPS committee. “It is a rigorous process that tests our policies and internal controls on every aspect of GIPS. Adopting GIPS is a firm-wide effort that requires the collaboration of all departments in the firm. It speaks not just to an industry standard, but to a culture of high performance and attention to detail. Simply put: we always want to be a leader in adopting best practices.”
The foundation for the GIPS standards was first established in 1987 with the creation of the AIMR Performance Presentation Standards (AIMR-PPS®), voluntary performance guidelines for the North American investment management industry. In search of a global standard, the CFA Institute approved Global Investment Performance Standards (GIPS) in 2005. The GIPS standards have replaced country specific performance standards, providing for the comparison of investment performance internationally across firms.
“GIPS® is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this report/advertisement.”
CMG Capital Management Group, Inc. is a leader in tactical investing strategies and liquid alternative mutual funds serving independent advisors, broker dealers, advisory firms and individuals. The company’s proprietary tactical investment strategies are available in managed accounts, mutual funds and variable annuities. CMG’s research team regularly produces tactical investing intelligence in the form of weekly commentary, blog posts, and Whitepapers.