eVestment Alliance (eVestment), a global provider of institutional investment data intelligence and analytic solutions, and GIPS® verification and consulting firm, ACA Beacon Verification Services, announced today the release of results from "The Value of GIPS® Compliance: 2012 Manager and Consultant Survey".
The survey asked all respondents to express their overall view of GIPS compliance. 69% of respondents answered that a claim of GIPS compliance is essential to compete in the institutional arena. Interestingly, only 29% of responding firms believe GIPS compliance remains a competitive advantage, compared to 40% in similar survey conducted in 2009. While claiming compliance with the GIPS standards 10 years ago may have provided an edge over competitors, the survey results indicate that today GIPS compliance is a de facto requirement to compete in the institutional space. The survey results also revealed that 75% of the firms responding claim compliance with the GIPS.
In addition, a short but critically important survey was sent to eVestment's institutional investor and investment consulting clients. Their opinion of the GIPS standards may in fact be the most significant since consultants and investors are the target market for asset managers. 81% of consultants that participated in the survey indicated that they exclude managers who do not claim compliance with the GIPS standards from searches some or all of the time.
Overall Trends Include:
- Smaller, boutique asset managers have increased their rate of compliance with the GIPS standards, most likely in an effort to compete for institutional assets.
- In general, the larger the firm, the more likely it is to comply with the GIPS standards.
- The rate of compliance was highest in the United States, with global asset managers having a high rate of compliance as well.
A total of 339 firms responded, consisting of smaller, emerging managers to the largest asset managers. Respondents were diverse in terms of assets under management, client type, geographical location, and investment focus.
Justin Guthrie, partner of the verification division of ACA Compliance Group, said, "The findings are indicative that the industry continues to move towards standardization and transparency, two trends that are increasingly evident in the institutional arena. The results from the consultant survey should be of particular interest to managers competing for institutional assets."
"Within the U.S. investment management industry, GIPS compliance and verification have long been considered requirements for firms to be included in RFPs for institutional asset mandates," said Heath Wilson, co-founder of eVestment, "For larger, more institutionally oriented asset managers, adherence to GIPS standards has been part of the compliance fabric for some time. In recent years, GIPS compliance has gained more attention globally, most recently in emerging markets."
The full survey results can be accessed here: Survey
About eVestment Alliance (www.evestment.com)
eVestment Alliance is a global provider of institutional investment data intelligence and analytic solutions. eVestment delivers extensive separate account, hedge fund and commingled fund data through robust, user-friendly products, with an unparalleled commitment to client service. Its diverse clients include leading investment consultants, asset managers, plan sponsors and others among the world's foremost financial organizations. The company was founded in 2000 and is headquartered in Atlanta, Georgia with offices in New York, London, Sydney, Hong Kong and regional sales offices in Boston, Seattle, Chicago, and Raleigh.
eVestment Alliance
5000 Olde Towne Parkway
Marietta, Georgia
30068
+1 877-769-2388
www.evestment.com
About ACA Beacon Verification Services
ACA Beacon Verification Services, a division of ACA Compliance Group, offers GIPS verification and consulting services to investment managers across the globe, providing clients with the skills, expertise, and knowledge drawn from our team's 70-plus years of GIPS experience. In our eleven year history, the GIPS division of ACA has worked with more than 300 asset managers ranging in size from under a billion to over $400 billion. In addition to verification, ACA Beacon Verification also offers GIPS compliance and performance measurement consulting, training, workshops, and custom scope procedures.
ACA Compliance Group
589 8th Avenue, 22nd Floor
New York, NY
10018-3005
212-868-5940
www.acacompliancegroup.com
Contacts:
Kwittken & Company
Abhi Basu, +1-646-747-7174
abasu@kwitco.com
