I’m an amateur when it comes to understanding investment performance standards. So I was surprised when a speaker at the CFA Institute’s GIPS (global investment performance standards) conference speaker said verification does NOT verify that firm’s composite numbers are correct or that firm is compliant. Huh?
As I understand it, verification simply means the firm has the right processes to be compliant and to calculate performance accurately.
If you’ve got questions about this topic, I suggest you mosey on over to the Investment Performance Guy’s blog, which includes a post on “Verification verifies compliance…not!” Blogger David Spaulding, president of The Spaulding Group, Inc., looks like a valuable resource for your GIPS and performance questions. Back in March 2009, I enjoyed writing “Fixed income attribution falls short” about his talk to the Boston Security Analysts Society.