The AIMR Performance Presentation Standards Date is the date that this compliance began, if the composite is constructed in accordance with a standards body.
Standard 5.A.1(a) requires at least five years of performance (or a record for the period since firm inception, if inception is less than five years) that is GIPS compliant. This Standard is not intended to prevent a new firm from complying with the Standards until it has one entire twelve-month period of performance. If the firm is less than twelve months old, it is permitted to present its performance since inception.
There are only two situations in which a firm can state that they are compliant with the GIPS standards:
On a performance presentation that fully adheres to the GIPS standards, including the mandatory 5 years of performance and all applicable disclosures, or
In a statement that includes no performance information.
Currently, firms must not reference compliance with the GIPS standards in statements that include any performance information (unless the statement is on a presentation that fully adheres to the Standards).
Firms may choose to state that they comply with the GIPS standards if no performance information is included, (e.g., press release). Such statements must include a disclosure indicating the definition of the firm as well as how readers of the statement can obtain a compliant presentation and a full list of the firm’s composites.
Consultant questionnaires often require managers to fill in quarterly performance charts. The questionnaires then ask the manager to indicate whether or not the numbers presented in the chart have been prepared in accordance with the GIPS standards.
To claim compliance, the firm must meet the requirements of the GIPS standards on a firmwide basis. Presentations claiming compliance must meet each requirement of the Standards including disclosure requirements. Performance results cannot be "in compliance" unless all the requirements of the Standards are met. Questions regarding whether returns "are prepared" in compliance with the Standards demonstrate a misunderstanding of the meaning of being in compliance with the GIPS standards. However, if the performance numbers used to answer questionnaires are from a GIPS compliant presentation, then the firm can state the information provided is in compliance. Firms must also include a full presentation with their questionnaire response.
To address statements that include performance information, AIMR and the IPC are working to propose GIPS advertising guidelines, based on the principles of the current AIMR-PPS Advertising Guidelines, that will allow firms to advertise that they comply with the GIPS standards, without reproducing an entire compliant presentation. This guidance is to be used in the interim period prior to the adoption of the GIPS guidelines. The proposed guidelines will likely be released for a period of public comment in mid-2002.